Arvind Fashions receives Rs 439 crore from promoters and investors

21th August 2021, Mumbai:

Arvind Fashions Ltd (AFL), India's biggest casual and denim maker announced on Saturday that it has funded Rs 439 crore by selling equity shares to different marquee investors, including founders. According to AFL, this will "substantially improve" the balance sheet and help the company to follow its development plan while shielding it from COVID-related risks.

"At its meeting today (Saturday), the Board of Directors of AFL authorised the preferential issue of equity shares worth Rs 439 crore to different marquee investors, including promoters, at a price of Rs 218.50," it added.

Akash Bhanshali, existing shareholders such as ICICI Prudential Mutual Fund, different international institutional investors such as University of Notre Dame Du Lac, GP Emerging Markets Strategies LP, The Ram Fund LP, and other investors engaged in the fundraising. Aura Merchandise, a promoter business, also took part in the preferential offer for Rs 40 crore, according to the statement. "This financing completes the capital required for expansion and navigating any risks," the firm stated, adding that "the company is unlikely to require any more funds in the near to medium term."

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This cash, according to AFL Non-Executive Director Kulin Lalbhai, will go a long way toward totally bolstering AFL's balance sheet and helping to mitigate any possible COVID-related concerns. The acquisition, however, is subject to requisite shareholder and SEBI clearances, according to the firm. AFL sold its "unlimited" store network to V-Mart Retail Ltd, a discount clothes retailer, for an estimated Rs 150 crore in an all-cash transaction last month. US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale, and Ed Hardy are among the foreign and indigenous brands represented by AFL. It also has a collaboration with Sephora in the beauty selling industry.

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