The fundraising is a part of the company’s wide objectives of reducing leverage, strengthening balance sheet apart from funding general corporate expenses, including working capital.
The country’s largest fashion and lifestyle player- Aditya Birla Fashion is all set to raise funds worth Rs. 1000 crore by rights issues. The move is a part of its fund-raising plans for the current fiscal as well to cap the leverage, according to a company official.
Aditya Birla Fashion is a leader in the fashion and lifestyle sector and has its footprints across the country. The company operates through a chain of 25,000 multi-brand outlets and 3050 stores, spread throughout the country.
The management evaluated various options and finally decided that the rights issue will be a lucrative mode of fundraising as it gives shareholders an opportunity to participate in the company’s decision making.
The fundraising is a part of the company’s wider objectives of reducing leverage, strengthening balance sheet apart from funding general corporate expenses, including working capital.
The board is likely to invite a committee to evaluate and finalize the timing and other details of the proposed issue. Commenting upon the timing of the issue, the official said they intend to complete the issue at the earliest, subject to market conditions and other factors, including regulatory approvals.
This initiative will give the promoters and promoter group complete authority to their rights entitlement and will reserve their right to subscribe to any additional equity shares in the issue that is under-subscribed.