Aditya Birla Fashion and Retail to raise Rs 2,195 crore from GIC

Aditya Birla Fashion and Retail Ltd (ABFRL) will be raising of up to Rs 2,195 crore through an affiliate of GIC, Singapore’s sovereign wealth fund.

New Delhi, May 24: The board of Aditya Birla Fashion and Retail Ltd (ABFRL) on Tuesday approved raising of up to Rs 2,195 crore. by way of preferential issuance of equity and warrants to an affiliate of GIC, Singapore’s sovereign wealth fund. In a regulatory filing, ABFRL said that the board has approved fund raising by issuance of equity shares. And warrants on a preferential allotment basis to Caladium Investment Pte Ltd by entering into a share subscription agreement (SSA) dated May 24, 2022. “The preferential issue is subject to regulatory approval(s) and other closing conditions under the SSA”. ABFRL said in the filing.

It said that the board also approved an increase in authorized share capital. From existing Rs 1,010.15 crore to Rs 2,010.15 crore. The company in a statement said that GIC will invest Rs 770 crore now towards subscription of equity and warrants. Followed by up to Rs 1,425 crore in one or more tranches within 18 months upon exercise of warrants. “Post the entire investment, GIC will own 7.5 per cent equity stake in ABFRL. Aditya Birla Group will hold 51.9 per cent stake in the company post the completion of this transaction. “ABFRL plans to use the capital to accelerate its growth.

“Welcoming GIC as a long-term partner in the company’s growth. Kumar Mangalam Birla, Chairman Aditya Birla Group said that. An investment of this nature serves to underscore ABFRL’s strong position and dynamic growth model. “Choo Yong Cheen, Chief Investment Officer of Private Equity for GIC said. “We are delighted to partner with Aditya Birla Fashion and Retail. To bring our long-term capital and resources to support its next phase of growth. “ABFRL has a strong track record of building brands and its new business lines. Including innerwear and ethnic wear, have strong structural tailwinds. We are confident that the company is well-positioned. To continue its transformational journey into a future-ready consumer company. Powered by the growth of India”. Added Cheen.

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