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Aditya Birla Fashion & Retail Completes Rs 1,860 Crore Fund Raise Through QIP

Key Facts: 

Qualified institutional placements (QIPs) are a way to issue shares to the public without going through standard regulatory compliance. 

ABFRL is a leading player in India’s fashion and retail industry, with a diverse portfolio of well-known brands. 

Prime Highlights: 

Aditya Birla Fashion & Retail (ABFRL) successfully raised Rs 1,860 crore through its first-ever Qualified Institutional Placement (QIP). 

ABFRL issued 68,583,059 equity shares of face value Rs 10 each to eligible Qualified Institutional Buyers (QIBs) at a price of Rs 271.3 per share, including a premium of Rs 261.3 per share. 

Key Background: 

Aditya Birla Fashion & Retail (ABFRL) has successfully completed its fund raise through a Qualified Institutional Placement (QIP), raising a total of Rs 1,860 crore. The QIP was approved by the company’s QIP Committee during a board meeting held on January 21, 2025. 

Under the QIP, ABFRL allotted 68,583,059 equity shares of face value Rs 10 each to eligible Qualified Institutional Buyers (QIBs) at an issue price of Rs 271.3 per share, which includes a premium of Rs 261.3 per share. The total amount raised through the QIP will be used to strengthen the company’s balance sheet and support its strategic growth initiatives. 

This marks ABFRL’s first-ever QIP, which opened for subscription on January 16, 2025, and closed on January 21, 2025. The offering received an overwhelming response, with the issue being oversubscribed by approximately two times. Both domestic and international institutional investors showed significant interest, underscoring the confidence in ABFRL’s business model and growth potential. 

The successful conclusion of the QIP follows a previous preferential issuance that raised Rs 2,379 crore, with participation from the promoter group and key institutional investors. The promoter group contributed Rs 1,298 crore, while Fidelity Investments invested Rs 1,081 crore in the preferential issue. These fund-raising efforts collectively reinforce ABFRL’s position in the market, enabling the company to further expand its portfolio and accelerate its growth plans. 

ABFRL is one of India’s leading fashion and retail companies, with a diverse portfolio of brands across apparel, accessories, and footwear. The funds raised through the QIP and preferential issuance are expected to enhance the company’s financial flexibility and enable it to capitalize on emerging opportunities in the retail sector. This strategic move highlights ABFRL’s commitment to strengthening its capital base, positioning the company for long-term growth and value creation for its stakeholders.