The board of Aditya Birla Fashion and Retail Limited (ABFRL) in its meeting today approved raising of up to ₹2,195 crore, by way of preferential issuance of equity and warrants to an affiliate of GIC, Singapore’s sovereign wealth fund.
GIC will invest ₹770 crore now towards subscription of equity and warrants, followed by up to ₹1,425 crore in one or more tranches within 18 months upon exercise of warrants. Post the entire investment, GIC will own 7.5% equity stake in ABFRL. Aditya Birla Group will hold about 51.9% stake in the company post the completion of this transaction.
ABFRL said it plans to use this capital to accelerate its growth engine built around strength of its current businesses along with a rapidly evolving play in emerging high-growth business models. The transaction is subject to regulatory and other customary approvals.
“ABFRL has become one of the leading players in this market through its diversified portfolio of strong brands, wide distribution and an established business model and is well positioned to benefit from this opportunity. An investment of this nature serves to underscore ABFRL’s strong position and dynamic growth model," said Kumar Mangalam Birla, Chairman Aditya Birla Group.
