Aditya Birla Fashion to raise Rs 2,195 crore from GIC

NEW DELHI: Aditya Birla Fashion and Retail Limited (ABFRL) on Tuesday said it will raise up to Rs 2,195 crore from Singapore’s sovereign wealth fund GIC. The board of the Aditya Birla group firm has approved the proposal to raise Rs 2,195 crore by way of preferential issuance of equity and warrants to an affiliate of GIC, a joint statement said.

“GIC will invest Rs 770 crore now towards subscription of equity and warrants, followed by up to Rs 1,425 crore in one or more tranches within 18 months upon exercise of warrants. Post the entire investment, GIC will own a 7.5 per cent equity stake in ABFRL,” it added.

After the transaction, Aditya Birla Group will hold a 51.9 per cent stake in the firm. “ABFRL plans to use this capital to accelerate its growth engine built around the strength of its current businesses along with a rapidly evolving play in emerging high-growth business models,” according to the statement.

Aditya Birla Group chairman Kumar Mangalam Birla said: “I am delighted to welcome GIC, a global institutional investor, as a long-term partner in the company’s exciting growth journey. An investment of this nature serves to underscore ABFRL’s strong position and dynamic growth model”. We are delighted to partner with Aditya Birla Fashion and Retail to bring our long-term capital and resources to support its next phase of growth, Choo Yong Cheen, chief investment officer of Private Equity for GIC, said.

“ABFRL has a strong track record of building brands and its new business lines, including innerwear and ethnic wear, have strong structural tailwinds. We are confident that the company is well-positioned to continue its transformational journey into a future-ready consumer company powered by the growth of India,” Cheen added.

ABFRL has recorded a revenue of Rs 8,136 crore, spanning a retail space of 9.2 million sq ft (as of March 31, 2022). It is one of India’s leading pure-play fashion powerhouses with an elegant bouquet of leading fashion brands and retail formats.