Aditya Birla Fashion Approves ₹5,000 Crore Fundraising Plan

Aditya Birla Fashion Ltd announced that its board has approved plans to raise ₹5,000 crore, following a meeting held on Wednesday, January 15, 2025. The funds will be raised through a combination of methods, including a preferential issue of shares and Qualified Institutional Placement (QIP).

QIP Details

The company stated in its exchange filing that it will raise up to ₹2,500 crore through the issuance of equity shares via qualified institutions placement. This move is aimed at strengthening its financial position and supporting future growth initiatives.

Preferential Allotment to Promoters and Non-Promoters

In addition to the QIP, Aditya Birla Fashion will raise funds through a preferential allotment. The board has approved issuing equity shares worth up to ₹1,298 crore to promoter Pilani Investment and Industries Corporation. Furthermore, shares worth up to ₹1,081 crore will be issued to the Fidelity Group under the non-promoter category.

Multiple Fundraising Methods Approved

To ensure flexibility, the company has outlined that the fundraising will be executed through permissible modes, including but not limited to equity shares, warrants, convertible securities, QIP, rights issues, preferential shares, and follow-on public offerings (FPO).

Stocks Performance 

On January 15, 2025, ABFRL share price traded down by 0.92% at 1:42 PM (IST) at ₹267.85, while the BSE benchmark Sensex is up by just 74.86 points to 76,575.50. ABFRL’s share price reached a 52-week high of ₹364.50 on September 27, 2024, and a 52-week low of ₹198.45 on March 13, 2024. As per BSE, the total traded volume for the stock stood at 3.22 lakh with a turnover of ₹8.72 crore.

At the current price, ABFRL shares are trading at a price-to-earnings (P/E) ratio of -111.14x, based on its trailing 12-month earnings per share (EPS) of ₹-2.41, and a price-to-book (P/B) ratio of 5.32, according to exchange data.

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