Aditya Birla Fashion and Retail Ltd (ABFRL) announced on Tuesday, January 21, 2025, that it has successfully raised ₹1,860 crore through a Qualified Institutional Placement (QIP) of equity shares. This marks the company’s first QIP transaction, signalling strong investor confidence in its growth strategy.
The QIP Committee of ABFRL’s Board of Directors approved the issuance and allotment of 68,583,059 equity shares with a face value of ₹10 each. The shares were issued at ₹271.3 per share, including a premium of ₹261.3 per share.
The fundraising targeted Qualified Institutional Buyers (QIBs) and saw strong interest, achieving a 2X subscription from both domestic and international institutional investors.
ABFRL plans to use the proceeds to accelerate the growth of its established platforms, focusing on new business opportunities and strengthening its position in the fashion retail market.
The QIP opened on January 16, 2025, and closed on January 21, 2025. ABFRL expressed satisfaction with the overwhelming response from prominent investors, reflecting confidence in its business strategy and prospects.
The funds raised through this QIP, along with a previous preferential issuance of ₹2,379 crore, are expected to make ABFRL a debt-free entity. In the earlier issuance, the promoter group invested ₹1,298 crore, while Fidelity Investments contributed ₹1,081 crore.
ABFRL stated, “The fundraising will make the consolidated entity debt-free and pave the way for the rapid expansion of key growth platforms established over the last few years.”
Avendus Capital Private Limited, Goldman Sachs (India) Securities Private Limited, and Jefferies India Private Limited acted as managers for the QIP offering.
On January 22, 2025, ABFRL share price traded up by 0.58% at 9:26 AM (IST) at ₹278.55. 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 0.19 lakh shares with a turnover of ₹53.10 lakh.
At the current price, ABFRL shares are trading at a price-to-earnings (P/E) ratio of -116.47x, based on its trailing 12-month earnings per share (EPS) of ₹-2.41, and a price-to-book (P/B) ratio of 5.58, according to exchange data.
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Published on: Jan 22, 2025, 9:47 AM IST
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