Aditya Birla Fashion and Retail’s (ABFRL) board has approved raising 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 (GIC). GIC will first invest Rs 770 crore 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 investment, GIC will own approximately 7.5 per cent equity stake in ABFRL, while Aditya Birla Group will hold 51.9 per cent stake. ABFRL will use the proceeds to accelerate its growth engine built around strength of its current businesses along with a rapidly evolving play in emerging high-growth business models.
Aditya Birla Fashion and Retail is engaged in providing branded fashion apparels and accessories, and the retail sale of clothing, footwear and leather articles in stores. It operates through two segments: Madura Fashion & Lifestyle, and Pantaloons. The company's brands include Louis Philippe, Van Heusen, Allen Solly and Peter England.
