The board of Aditya Birla Fashion and Retail Limited (ABFRL) on Tuesday approved GIC, an affiliate of Singapore’s Sovereign Wealth Fund (GIC), to raise up to ₹ 2,195 crore through issuance of equity and warrants.
ABFRL said in a statement that GIC will now invest Rs 770 crore for subscription of equities and warrants, followed by an investment of up to Rs 1,425 crore in one or more tranches within 18 months.
Once the entire investment is done, GIC will have 7.5% equity stake in ABFRL.
After the completion of this deal, Aditya Birla Group will have 51.9% stake in the company.
ABFRL said it would use this capital to accelerate growth.
“An investment of this nature underscores ABFRL’s strong position and dynamic growth model,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
Ashish Dixit, MD, ABFRL said, “This capital investment allows us to accelerate the growth of this platform of strong brands and well-established retail formats and strengthen our position as one of the leading players in the rapidly growing branded apparel market. in the industry.”
“We look forward to benefiting from GIC’s extensive experience in investing in businesses globally and its long-term orientation,” he added.
Chu Yong Chen, Chief Investment Officer, Private Equity for GIC, said, “ABFRL has a strong track record of brand building and has strong structural tailwinds across its new business lines including innerwear and ethnic wear. We are confident that the company is well positioned to continue its transformational journey into a future-ready consumer company driven by India’s growth.
The transaction is subject to regulatory and other customary approvals.