ABFRL Announces US$ 500 Mn Equity Raise Through Preferential Issue and QIP
The board of Aditya Birla Fashion and Retail Limited (ABFRL), in its meeting, approved raising US$ 500 Mn through a combination of preferential issuance and Qualified Institutional Placement (QIP) of equity shares.
The preferential issuance of US$ 275 Mn will include investments of US$ 150 Mn from the promoter group and US$ 125 Mn from Fidelity Investments through its funds, including Fidelity Blue Chip Growth Fund and related pools. Notably, the promoter participation is at a significant 17.5% premium to yesterday’s closing price, underscoring their confidence in ABFRL’s value creation prospects.
Additionally, the board approved raising US$ 225 Mn through QIP, taking the total planned equity raise to US$ 500 Mn. This funding initiative aims to deleverage the company and fuel its aggressive growth strategy across multiple verticals.
This capital infusion also aligns with ABFRL’s strategic roadmap, marking a key milestone ahead of the planned vertical demerger into two separately listed entities. The demerger process is expected to conclude by the end of this financial year.
The shareholder meeting to approve the preferential issuance is scheduled for 13th February 2025, with the pricing reference date set for 14th January 2025. Both the preferential issuance and QIP are subject to customary and regulatory approvals.
This fundraise positions ABFRL for sustained growth, supported by its strong foundational growth engines established in recent years.
