Aditya Birla Fashion Launches QIP to Secure Capital

Aditya Birla Fashion and Retail Limited (ABFRL) has launched a Qualified Institutions Placement (QIP) to raise funds. The QIP Committee approved the issuance of equity shares on January 16, 2025. The face value of each equity share is ₹10, and the floor price has been set at ₹271.28 per share, calculated as per SEBI regulations.

Key Approvals and Details

The initiative follows a special resolution passed by shareholders and a subsequent board meeting held on January 15, 2025. The QIP Committee fixed January 16, 2025, as the ‘relevant date’ to determine the pricing. A discount of up to 5% on the floor price may be offered, subject to consultation with the book-running lead managers. The committee has also approved the preliminary placement document required for the issue.

Compliance and Restrictions

In compliance with SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015, a trading window blackout has been enforced for designated persons in light of the QIP process.  This step ensures regulatory compliance during the QIP process.

Operations 

ABFRL operates a network of retail stores across India, focusing on manufacturing and retailing branded apparel and accessories. The funds raised through this QIP will provide additional financial resources for its ongoing business activities. 

Financial Highlights

ABFRL, known for its retail operations in branded apparel and accessories, reported a total revenue of ₹7,071.68 crore for the six months ending September 30, 2024. The company’s inventory was valued at ₹4,490.44 crore for the same period, showing its retail operations. Its current liabilities included borrowings worth ₹1,302.12 crore as of September 30, 2024.

As of 1:07 PM on January 17, Aditya Birla Fashion and Retail Ltd were trading at ₹273.65, down by ₹2.80 (1.01%) today, showing a 22.36% rise over the past year but a 15.36% decline in the last six months.

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