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Aditya Birla Fashion to sell minority stake to Singapore GIC to raise Rs 2,195 Crore

The board of Aditya Birla Fashion and Retail Limited (ABRFL) on Tuesday approved an increase of up to Rs 2,195 crore through a preferential issue of shares and warrants to a subsidiary of GIC , Singapore’s sovereign wealth fund, the company said in a statement.

“GIC will invest Rs. 770 Cr. now in subscription of shares and warrants, followed by up to Rs. 1,425 Cr. in one or more tranches within 18 months of exercise of the warrants”, did he declare.

GIC will hold a 7.5% stake in ABFRL upon completion of the investment, while Aditya Birla Group will hold a 51.9% stake in the company.

The company said it plans to use the capital to accelerate its growth engine “built around the strength of its current businesses” as well as a rapidly evolving game in “high-growth emerging business models.”

ABFRL is home to brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, The Collective, Ralph Lauren, Hackett London, Ted Baker, Reebok, Forever 21, among others.

It has a network of 3,468 exclusive stores, 6,515 department store outlets and 28,585 multi-brand outlets across India. As of March 2022, his earnings stood at Rs 8,136 crore.

“ABFRL has become one of the leading players in this market through its diverse portfolio of strong brands, wide distribution and established business model and is well positioned to take advantage of this opportunity. I am delighted to welcome GIC, an investor global institutional, 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,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group.

Choo Yong Cheen, Chief Investment Officer of Private Equity for GIC, said, “We are delighted to partner with Aditya Birla Fashion and Retail to contribute our long-term capital and resources to support its next phase of growth. ABFRL has a strong track record in building brands and its new business areas, including loungewear and ethnic apparel, have strong structural tailwinds. We are confident that the company is well placed to continue its transformation journey into a future-ready consumer business fueled by India’s growth. »

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