Home >Companies >News >Aditya Birla Fashion to launch 995-cr rights issue on 8 July

Mumbai: Aditya Birla Fashion and Retail Ltd (ABFRL) will be launching a rights issue aimed at raising 995 crore on 8 July.

The rights issue, which will allow existing shareholders of the company to subscribe to shares at a price of 110 per share, will close on 22 July.

Investors will have to pay 50% of the subscription amount upfront, with the rest payable in two tranches of 25% each in January 2021 and July 2021.

Existing shareholders are eligible for nine shares for every 77 existing shares held by them.

The promoter group, led by Kumar Mangalam Birla, will fully subscribe to the extent of their rights entitlement and do not intend to renounce such rights, except to the extent of renunciation within the promoters and promoter group; and will also subscribe to any additional equity shares in the issue, for ensuring subscription to the extent of at least 90% of the issue.

The proceeds of the rights issue will largely be used to repay, in whole or part, some of the existing loan facilities availed by the company.

Investment banks ICICI Securities and Axis Capital are advising the company on the rights issue.

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