Aditya Birla Fashion to Raise Rs 500 Crore Through NCDs

Aditya Birla Fashion and Retail Ltd. (ABFRL), one of India’s top retail giants, announced that it is ready to raise up to Rs.500 crore through non-convertible debentures (NCDs). The board’s finance committee gave the go-ahead for the fundraise during a meeting that happened recently, as revealed in a filing. This will hopefully help ABFRL strengthen its financial position and gain more flexibility for the future.

NCDs are a popular way for companies to raise funds without affecting equity. For ABFRL, this method provides a boost to their finances while keeping their long-term plans intact.

Merger with TCNS Holdings

In another important development, ABFRL’s board has also approved the allotment of 5.57 crore fully paid-up shares to TCNS Holdings. As part of the deal, for every six shares of TCNS with a face value of Rs.2, ABFRL will issue 11 shares with a face value of Rs.10 each. The record date for this transaction passed very recently.

This merger will result in ABFRL’s equity share capital increasing from Rs.1,015 crore to Rs.1,071 crore, while the paid-up capital will go up to Rs.1,070 crore. It’s a big step toward expanding ABFRL’s brand portfolio.

What Happened Earlier?

Aditya Birla Fashion and Retail Ltd. (ABFRL) came into existence in 2015 after merging the Aditya Birla Group’s apparel brands, including Madura Fashion, Pantaloons Fashion & Retail (PFRL), and Madura Fashion & Lifestyle. As part of the $48.3 billion Aditya Birla Group, ABFRL benefits from a global presence, operating in 34 countries with a workforce of over 120,000 employees from 42 nationalities. This consolidation has helped ABFRL grow into one of India’s leading retail companies, offering a diverse portfolio of fashion and lifestyle products.

Conclusion: To sum up, with this fundraising through non-convertible debentures (NCDs) and the merger with TCNS Holdings, ABFRL is making well-thought-out moves to expand its brand portfolio while boosting financial flexibility. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.