Aditya Birla Fashion and Retail completes fundraise of Rs 1,860 cr via QIP

Aditya Birla Fashion and Retail (ABFRL) announced the completion of its fundraise through a Qualified Institutional Placement (QIP) of equity shares aggregating Rs 1,860 crore, the company said in a release.

 

The QIP committee of the board of directors of the fashion retailer (QIP committee) approved the issue and allotment of 6.85 crore equity shares of face value Rs 10 each to eligible Qualified Institutional Buyers (QIBs) at an issue price of Rs 271.3 per equity share (including a premium of Rs 261.3 per equity share), aggregating Rs 1,860 crore, during its meeting on Tuesday.

 

“The company’s first-ever QIP transaction, which opened on January 16 and closed on January 21, received an overwhelming response from prominent domestic and foreign institutional investors, with a subscription of around two times. The successful QIP comes on the back of a preferential issuance of Rs 2,379 crore, with participation from the promoter group, investing Rs 1,298 crore, and Fidelity Investments, investing Rs 1,081 crore,” ABFRL said in its release.

 

The company added that the successful fundraise reflects investor confidence in the high-growth potential of India’s fashion industry and its position as a leading player in the market. “The fundraise will make the consolidated entity debt-free and pave the way for the rapid expansion of key growth platforms established over the last few years,” it said.

 

Avendus Capital, Goldman Sachs (India) Securities, and Jefferies India were the managers of the QIP offering. The preferential issuance and QIP remain subject to further customary and regulatory approvals.

 

The board of ABFRL, in its meeting held on January 15, approved the raising of $500 million through a combination of preferential issuance and QIP of equity shares.

 

Ashish Dikshit, managing director, ABFRL, said, “The robust investor interest underscores the inherent strength and long-term potential of our brands and the distinctiveness of our business model. This strategic capital infusion positions us to expedite our growth trajectory at a pivotal moment in India's evolving consumption landscape. We are proud to play a leading role in India's fashion sector, which is set for transformative expansion as the shift toward organised retail gathers pace.”