The Indian Wire » Business » Aditya Birla Fashion to roll out rights issue subscription from July 8

Aditya Birla Fashion to roll out rights issue subscription from July 8

Aditya Birla Fashion and Retail is planning to open subscription of its rights issue by next week on July 8 to July 22. July 1 has been decided as the record date for the rights issue. The price of the rights issue has been pegged at Rs 110 for one fully-paid share of face value Rs 10 (14 per cent discount to the last closing price of the share at Rs 128).

The investors will have to pay the amount in tranches. 50 per cent of the amount will have to be paid at the time of application, and the next 25 per cent amount has to be paid in January 2021 while remaining 25 per cent is to be paid in July 2021.

Aditya Birla will issue 9,04,65,693 partly-paid up equity shares through these rights issue. The rights entitlement ratio is 9:77 which means for every 77 existing fully-paid shares held by eligible equity shareholders as on the record date, 9 partly-paid rights equity shares will be offered.

The company said, “The promoter and promoter group will fully subscribe to the extent of their Rights Entitlement and do not intend to renounce such rights, except to the extent of renunciation within the promoters and promoter group; and subscribe to any additional equity shares in the issue, amongst themselves, for ensuring subscription to the extent of at least 90 per cent of the issue (in case of under-subscription below 90 per cent in the issue)”.

It added, “Any participation by the promoter/members of the promoter group, over and above their rights entitlement, shall not result in a breach of the minimum public shareholding requirements prescribed under applicable laws”.

The board has also approved the Letter of Offer which will be filed with SEBI, BSE Limited and National Stock Exchange of India Limited.

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