Aditya Birla Fashion to raise ₹2,195 cr from GIC
NEW DELHI: Aditya Birla Fashion and Retail Limited (ABFRL) will raise up to ₹2,195 crore from Singapore’s sovereign wealth fund GIC, it said on Tuesday.
The board of the Aditya Birla group firm has approved the proposal to raise ₹2,195 crore by way of preferential issuance of equity and warrants to an affiliate of GIC, according to a joint statement.
“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 a 7.5% equity stake in ABFRL,” it said.
After the transaction, Aditya Birla Group will hold a 51.9% stake in the firm. “ABFRL plans to use this capital to accelerate its growth engine built around the strength of its current businesses along with a rapidly evolving play in emerging highgrowth business models,” the GIC and ABFRL said.
Aditya Birla Group chairman Kumar Mangalam Birla said: “I am delighted to welcome GIC, a global institutional investor, as a long-term partner in the company’s exciting growth journey. An investment of this nature serves to underscore ABFRL’s strong position and dynamic growth model”.
Choo Yong Cheen, chief investment officer of private equity for GIC, said, “We are delighted to partner with Aditya Birla Fashion and Retail to bring our long-term capital and resources to support its next phase of growth. ABFRL has a strong track record of building brands and its new business lines, including innerwear and ethnic wear, have strong structural tailwinds. We are confident that the company is well-positioned to continue its transformational journey into a futureready consumer firm powered by the growth of India.”
ABFRL has recorded a revenue of ₹8,136 crore, spanning a retail space of 9.2 million sq ft (as of March 31).
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