Aditya Birla Fashion and Retail Raises Rs 1,860 Crore in Record QIP Fundraise

Aditya Birla Fashion and Retail (ABFRL) stated in a release that it has successfully completed its fundraising via a Qualified Institutional Placement (QIP) of equity shares totaling Rs 1,860 crore.

Avendus Capital, Goldman Sachs (India) Securities, and Jefferies India managed the QIP offering. The preferred issuance and QIP are still contingent upon additional customary and regulatory approvals.

The company's inaugural QIP transaction, which commenced on January 16 and concluded on January 21, drew an impressive reaction from leading domestic and international institutional investors, achieving a subscription of about two times. The successful QIP follows a preferential issuance of Rs 2,379 crore, with the promoter group contributing Rs 1,298 crore and Fidelity Investments investing Rs 1,081 crore,” ABFRL stated in its announcement.

The board of directors' QIP committee of the fashion retailer approved the issuance and allocation of 6.85 crore equity shares with a face value of Rs 10 each to qualified Institutional Buyers (QIBs) at an issue price of Rs 271.3 per equity share (including a premium of Rs 261.3 per equity share), totaling Rs 1,860 crore in their meeting on Tuesday.

The board of ABFRL, in its meeting held on January 15, approved the raising of $500 million through a combination of preferential issuance & QIP of equity shares.

The company stated that the successful fundraising demonstrates investor faith in the significant growth prospects of India’s fashion sector and its role as a top contender in the market. “The fundraising will eliminate debt for the consolidated entity and facilitate the swift growth of crucial platforms developed in recent years,” it stated.