Aditya Birla Fashion and Retail Ltd. (ABFRL) declared that the board authorized the board to approve a plan to raise a significant amount of money by issuing equity shares on a preferential basis. The plan seeks to engage promoters and institutional investors to inject cash into the business; it is contingent upon regulatory and shareholder approval.
Up to 4,08,72,580 equity shares under the promoter/promoter group category are planned to be issued by ABFRL under the approved plan. With a face value of ₹10 each, these shares will be issued at a price of ₹317.45 apiece, which includes a ₹307.45 premium. The business anticipates raising ₹1,297.5 crore from this issue.
Furthermore, under the non-promoter category, the business intends to offer up to 3,96,97,838 equity shares to eligible institutional purchasers. These shares, which also have a face value of ₹10 apiece, will be sold for ₹272.37 each, plus a premium of ₹262.37. It is projected that ₹1,081.25 crore would be generated overall through this technique.
To get shareholder support for these fundraising efforts, the board has also set February 13, 2025, as the date of its Extraordinary General Meeting (EGM). The action demonstrates the business’s dedication to obtaining financial flexibility to support its expansion plans.
Additionally, ABFRL reiterated its intention to use a Qualified Institutions Placement (QIP) to fund up to ₹2,500 crore. This plan fits the company’s long-term finance strategy and was first accepted by shareholders at the Annual General Meeting on September 19, 2024. Subject to regulatory permissions, the QIP would comply with the relevant laws under the Companies Act of 2013 and SEBI ICDR.
These actions would strengthen ABFRL’s financial standing and allow it to take advantage of possibilities in the changing retail market. The anticipated capital injection highlights the company’s strategic focus on growing its operations and enhancing its market position.
Stock Price Trend:
The stock dropped as much as 2.5 percent to ₹263.40, the day’s low. The stock is now about 28% behind its 52-week peak of ₹364.50, reached in September 2024. Meanwhile, it has increased by over 33% since hitting a 52-week low of ₹198.45 in March 2024. The stock has risen by 17% in the past year but has already lost more than 4% in January, compounding losses following an 11% decline in December.
