During its meeting, the board of Aditya Birla Fashion and Retail Limited (ABFRL) authorised the raising of US $ 500 million through a mix of qualified institutional placement (QIP) and preferential issuance.
Fidelity Investments, which is investing US $ 125 million, and the promoter group, which is spending US $ 150 million, will lead the preferential issue of US $ 275 million.
Through its funds, Fidelity Investments will subscribe for the priority allotment. The Board also authorised a US $ 225 million equity offering through QIP, bringing the total amount raised to US $ 500 million.
Through the various growth engines it has built over the past few years, this combined fund raise will deleverage the company and put it in a position to aggressively pursue its growth strategy. In advance of the company’s planned vertical demerger into two independently listed companies, this capital raise represents a significant milestone. By the conclusion of the current fiscal year, the demerger exercise should be finished.
