Mumbai | January 15, 2025: At its meeting today, the board of Aditya Birla Fashion and Retail Limited (“ABFRL”) authorised the offering of USD 500 million in equity shares through a mix of qualified institutional placement (“QIP”) and preferential issuance. The promoter group, which is spending USD 150 million, and Fidelity Investments, which is investing USD 125 million, will lead the preferential issue of USD 275 million. The promoters’ substantial 17.5% premium over yesterday’s closing price indicates their great belief in ABFRL’s capacity to create wealth.
Through its funds—the 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—Fidelity Investments will subscribe for the preferential allotment.
In order to achieve a total of USD 500 million, the Board additionally authorised an equity offering through QIP for up to USD 225 million.
Through the many growth engines it has built over the past several years, this combined capital raising will deleverage the firm and put it in a position to aggressively pursue its growth plan.
In advance of the company’s planned vertical demerger into two independently listed companies, this capital raising represents a significant milestone. By the conclusion of current fiscal year, the demerger procedure should be finished.
The date for pricing the offering will be January 14, 2025, and the shareholder meeting to approve the preferential issuance is set for February 13, 2025.
Both QIP and preferential issuance will require regulatory and customary clearances.
About Fashion and Retail Aditya Birla Limited
ABFRL is a member of the Aditya Birla Group, a well-known Indian corporation. With 11.9 million square feet of retail space and a sales of Rs. 13,996 Cr. as of March 31, 2024, it is the first billion-dollar pure-play fashion powerhouse in India, offering a sophisticated assortment of top fashion brands and retail formats.
As of September 30, 2024, the company’s network of 4,538 shops in department stores around India included 9,047 points of sale and roughly 37,952 multi-brand outlets.
Its portfolio includes some of the biggest brands in India, including Peter England, Allen Solly, Van Heusen, and Louis Philippe, which have been around for more than 25 years. Style Up is a new bargain retail structure, and Pantaloons is one of India’s top fashion retailers.
The Collective, one of India’s biggest multi-brand retailers of international brands, is part of the company’s portfolio of international brands. It also maintains long-term exclusive partnerships with a number of brands, including American Eagle, Reebok, Simon Carter, Ted Baker, Fred Perry, Ralph Lauren, Hackett London, and Galeries Lafayette.
Brands include Jaypore, Tasva, and Marigold Lane are part of the company’s entry into the branded ethnic clothing market. The designers “Shantnu & Nikhil,” “Tarun Tahiliani,” “Sabyasachi,” and “House of Masaba” have strategic alliances with the firm. The recently combined TCNS portfolio of ethnic women’s brands, including W, Aurelia, Wishful, Elleven, and Folksong, is also included in this.
In addition, to cater to the needs of digitally native consumers, ABFRL is building a portfolio of Digital-first brands under its technology led ‘House of D2C Brands’ venture TMRW. TMRW is on a path to building a portfolio of Digital First brands in partnership with founders of emerging brands in the E-Commerce market.