Arvind Fashions stock up 8 pc after raising Rs 439 crore from marquee investors

Bengaluru (Karnataka) [India], Aug 23 (ANI): The board of directors at Arvind Fashions Ltd has approved preferential allotment of equity shares aggregating to Rs 439 crore to various marquee investors including promoters at a 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 LP, The Ram Fund LP, Ashish Dhawan and other investors.
Aura Merchandise Pvt Ltd, a promoter entity, also participated in the preferential issue for an amount of Rs 40 crore.
With this fund raise, the company completes capital requirement needed for growth and navigating any uncertainties. With focused strategy of profitable growth, the company is unlikely to require any more funding in near to medium term, it said in a statement.
"We are extremely happy to have the confidence and strong support from our existing and new investors," said Kulin Lalbhai, Non-Executive Director.
"This capital will go a long way in completely strengthening Arvind Fashion's balance sheet and help counter any potential Covid related uncertainties."
Shailesh Chaturvedi, Chief Executive Officer, said the business momentum continues to be strong and the company is focused on growing its six high conviction brands.
"This capital will help significantly deleverage the company's balance sheet and adequately fund the growth in coming quarters, thereby further strengthening our leadership in the casualwear, denim and prestige beauty categories in the industry."
Metta Capital acted as exclusive financial advisor to Arvind Fashion for the transaction. At 10:50 am, the company's stock was trading 8.2 per cent higher at Rs 259.85 per unit. (ANI)