Arvind Fashions soared 7.75% to Rs 258.50 after the company's board approved the preferential allotment of equity shares worth Rs 439 crore to various marquee investors including promoters at the price of Rs 218.50.
The marquee investors who participated in the fund raise are Akash Bhanshali, existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors (including University of Notre Dame Du Lac, GP Emerging Markets Strategies L.P., The Ram Fund L.P.), Ashish Dhawan and other investors. Aura Merchandise, a promoter entity has also participated in the preferential issue for an amount of Rs 40 crore.
With this fund raise, the company said it will significantly strengthen the balance sheet and allow the business to pursue its growth strategy while insulating it from any COVID-19 related uncertainties. With focused strategy of profitable growth, the company is unlikely to require any more funding in near to medium term.
On a consolidated basis, Arvind Fashions reported a net loss of Rs 182.49 crore in Q1 June 2021 as compared to a net loss of Rs 213.13 crore in Q1 June 2020. Net sales surged 343.8% to Rs 319.24 crore in Q1 FY22 over Q1 FY21.
Arvind Fashions is a leading player in apparel brands and retail space with 21 international and Indian brands. It also has a 50:50 joint venture with Tommy Hilfiger in India.
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