ABFRL approves Rs 2,400 crore preferential issue for promoters, QIB
Aditya Birla Fashion and Retail Limited (ABFRL) on Wednesday approved issuance of shares worth about Rs 2,379 crore on a preferential issue basis to promoters and qualified institutional buyers (QIBs).
After a board meeting to consider the fund-raising proposal, the Aditya Birla Group company said it had approved the issuance of up to 4,08,72,580 equity shares at an issue price of Rs 317.45 per share, for an aggregate consideration of up to Rs 1,297.5 crore to the promoter group.
After the completion of the fund-raising, the shareholding of Pilani Investment and Industries will increase to 3.9% from 0.37% currently.
The retailer has also approved equity fundraising of Rs 1,081.25 crore at a price of Rs 272.37 per share to QIBs. Fidelity Blue Chip Growth Fund, Fidelity Blue Chip Growth Commingled Pool, Fidelity Blue Chip Growth K6 Fund, Fidelity Series Blue Chip Growth Fund, and FIAM Target Date Blue Chip Growth Commingled Pool will participate in the round.
Following the announcement, shares of the company were trading around 0.43% lower at Rs 269.20. The stock has underperformed benchmark indices and has given a return of less than 5% in the last year.
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