NE BUSINESS BUREAU
MUMBAI, JULY 13
The Board of Directors of the branded apparel and retail company of the Arvind Group, Arvind Fashions Limited on Monday said the rights issue sale which commenced on June 29 will end on July 17, a company release said.
Arvind Fashions, has increased the amount of capital it envisages to raise via the sale of a rights issue by Rs 100 crore, from nearly Rs 300 crore to about Rs 400 crore now. In order to achieve its revised target, it has also reduced the issue per share price to Rs 100 from Rs 150.
The company said, “The Board has approved the issue of up to 3,99,79,347 equity shares of the face value of Rs. 4 each at an issue price of Rs. 100 per equity share (including a premium of Rs 96 per Rights Equity Share) aggregating up to Rs. 399.79 crore to all the existing equity shareholders of the company on the record date, March 18, 2020, on a rights basis”.
Director of Arvind Fashions Limited, Kulin Lalbhai said, “With the opening up of the economy, our offline and online sales are seeing a growth momentum. The infusion of capital of about Rs. 399.79 crores through the Rights Issue will help the company stabilise its operations and cash flow”.
The company said, “Promoters of the company will fully subscribe to their rights entitlement and will reserve their right to subscribe to any additional equity shares in case the issue is under-subscribed”.
Flipkart Group to invest Rs 260 cre in Arvind Youth Brands
The Flipkart Group on Thursday, July 9, announced an investment of Rs 260 crore for a significant minority stake in AFL’s recently formed subsidiary Arvind Youth Brands which will own the Flying Machine brand.
