Aditya Birla Fashion and Retail Limited — Updates, 15-01-2025: Press Release

The board of Aditya Birla Fashion and Retail Limited has approved raising USD 500 million through a combination of preferential issuance and Qualified Institutional Placement (QIP) of equity shares. Of this, USD 275 million will come from a preferential issuance, prominently featuring the promoter group investing USD 150 million, along with Fidelity Investments contributing USD 125 million. Notably, the promoter group’s investment comes at a significant premium of 17.5% over the previous day's closing price, reflecting strong confidence in ABFRL's potential.

The remaining USD 225 million will be sourced via QIP, a move aimed at deleveraging the company and positioning it for aggressive growth through its recently established multiple growth engines. This capital raise is significant, especially ahead of the anticipated vertical demerger of the company into two separately listed entities, expected by the end of the financial year. A meeting for shareholders to approve the preferential issuance is planned for February 13, 2025, with the pricing set for January 14, 2025. Overall, this move presents a positive outlook for the company and its stakeholders.