Aditya Birla Fashion & Retail to raise ₹ 500 Cr through NCDs

The company’s Board of Directors said in a stock exchange filing today that “We wish to inform you that, the Company proposes to raise funds by issuing 5,000 listed, unsecured, rated, redeemable non-convertible debentures with a nominal value of ₹10,00,000 (Rupees 10 Lakh only) each issued at aggregate level in ₹5,00,00,00,000 (Rupees Five Hundred Crores only), by way of private placement, on or after January 13, 2023. The above is within the limits approved by the Board of Directors and Shareholders of the Company, from time to time.”

For the quarter ended September 2022 or Q2FY23, Aditya Birla Fashion and Retail reported its highest quarterly revenue ever, up 50% YoY at Rs. 3075 Cr. with a 33% increase compared to pre-Covid levels. For the quarter, consolidated EBITDA grew to Rs. 418 kr.

Based on the outlook for the next financial year, Aditya Birla Fashion and Retail Ltd. (ABFRL) said in its annual report that “The coming fiscal will be a race to normalcy for the industry with revived market sentiments. Your company is looking at the new fiscal with cautious optimism about markets and consumer preferences. The Indian economy is heading for a steady recovery, glimpses of which were visible during the festive season of FY22. As vaccination drives progress across the country, consumers are expected to return to shopping with renewed confidence. As mobility increases, demand for categories including formal, casual wear, party wear and accessories will recover. For the long term, India remains on a strong valve manufacturing path considering key growth factors such as favorable demographics, rising per capita and disposable income, and rising consumption. With a digitally and structurally transformed business, your company is on a growth trajectory to make the most of post-pandemic opportunities. Your company’s capital structure has undergone a significant change and the balance sheet has been further strengthened; giving it the necessary foundations to support the ambitious growth plans it pursues. A strong and healthy balance sheet with a diversified and well-executed portfolio game will enable your company to position itself as a leader in all fashion and lifestyle segments, from value, premium to brands luxurious.”

Shares of Aditya Birla Fashion and Retail Ltd closed today on the NSE at ₹278.75 level per piece, down 0.32% from the previous close of ₹279.65. The stock recorded a total volume of 2,523,914 shares compared to its 20-day average volume of 1,782,717 shares. In the last 1 year, the stock has fallen by 4.55%.