On January 15, 2025, Aditya Birla Fashion and Retail Limited (ABFRL) made a significant announcement regarding the approval of a Qualified Institutions Placement (QIP), which will raise ₹2,500 Crores by issuing equity shares with a face value of ₹10 each. This approval comes after the shareholders' consent, granted at the Annual General Meeting on September 19, 2024, and marks a pivotal moment in the company’s capital-raising strategy.

Details of the QIP Issue

The QIP is designed to offer equity shares to qualified institutional buyers (QIBs) in accordance with the provisions outlined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Sections 42 and 62 of the Companies Act, 2013. This move aligns with ABFRL’s efforts to enhance its financial resources and support its long-term growth strategy.

The total funds to be raised through this QIP issuance are up to ₹2,500 Crores, subject to necessary regulatory approvals. This capital will provide ABFRL with the financial flexibility to pursue strategic initiatives, which include expanding its market presence and investments in key business segments.

Next Steps and Regulatory Process

ABFRL's board meeting, held on January 15, 2025, marked the official approval for the issuance of the equity shares. The approval is still contingent on receiving the necessary regulatory approvals, including any permissions that may be required for the issuance process.

This QIP issuance is set to be an essential tool for the company to raise capital and strengthen its balance sheet. The company’s Board of Directors has emphasized that the issuance will be conducted in full compliance with the applicable laws, including the SEBI ICDR Regulations and the Companies Act, 2013.

Shareholder Approval and Board Meeting

The approval from the shareholders, as per the Annual General Meeting held on September 19, 2024, gave ABFRL the green light to proceed with this strategic move. The Board of Directors officially approved the QIP issue in a meeting held on January 15, 2025, which lasted from 9:00 a.m. to 9:34 a.m.

The company’s website (www.abfrl.com) provides further information and updates on this capital raising initiative.

Outlook for Aditya Birla Fashion and Retail

The QIP issue comes at a time when ABFRL is focused on strengthening its market presence and driving growth in its core business segments. With the funding raised from the equity issuance, ABFRL aims to fuel its expansion plans, improve its financial stability, and make strategic investments to meet future business demands.

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