India’s leading casual and denim manufacturer, Arvind Fashions Ltd. (AFL), has raised Rs. 439 crore from various marquee investors including promoters by issuing equity shares of the company.
AFL has a portfolio of both international and indigenous brands, which includes US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale and Ed Hardy.
Kulin Lalbhai, Non-Executive Director, AFL said this capital will go a long way in completely strengthening AFL’s balance sheet and help counter any potential pandemic-related uncertainties.
With this fundraise, it completes the capital requirement needed for growth and navigating any uncertainties. The company is unlikely to require any more funding in near-to-medium term.
The investors who participated in the fundraise are Akash Bhanshali, existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors including University of Notre Dame Du Lac, GP Emerging Markets Strategies LP, The Ram Fund LP and other investors.
Aura Merchandise, a promoter entity, also participated in the preferential issue for an amount of Rs. 40 crore.
The company also said the completion of the transaction is subject to necessary shareholder & SEBI approvals.
Last month, AFL had sold its ‘unlimited’ retail chain to value fashion retailer V-Mart Retail Ltd. for an estimated Rs. 150 crore in an all-cash transaction.
In an interview with the leading English business daily Mint, Shailesh Chaturvedi, CEO, Arvind Fashions said that many of their brands have crossed pre-Covid Aug ‘19 numbers.