Arvind Fashions Ltd (AFL), a leading Indian apparel brand, famous for its leading casual and denim manufacturing made an official statement announcing that the company has raised Rs 439 crores from various investors, including promoters by issuing equity shares of the company. This move will strengthen the company financially, as it is coping with pandemic-led uncertainties, the statement said.
“The Board of Directors of Arvind Fashions at its meeting held on Aug 21, approved the preferential allotment of equity shares aggregating to Rs 439 crore to various marquee investors including promoters at the price of Rs 218.50,” AFL said in a statement.
“With this fundraiser, it completes the capital requirement needed for growth and navigating any uncertainties,” it said adding “the company is unlikely to require any more funding in near to medium term.”
The investors who participated in the fundraising are Akash Bhanshali, existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors including University of Notre Dame Du Lac, GP Emerging Markets Strategies LP, The Ram Fund LP, and other investors. Aura Merchandise, a promoter entity also participated in the preferential issue for an amount of Rs 40 crore.
However, the company also said the completion of the transaction is subject to necessary shareholder & SEBI approvals, reported ET. Last month, AFL had sold its ”unlimited” retail chain to value fashion retailer V-Mart Retail Ltd for an estimated Rs 150 crore in an all-cash transaction.
Arvind Fashions Ltd has a portfolio of both international and indigenous brands which includes US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale, and Ed Hardy. It is also in the beauty retailing space in partnership with Sephora.
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