Apparel Firm, Arvind Fashions, has increased the amount of capital it envisages to raise via the sale of a rights issue by 100 crores, from nearly Rs 300 crore to about Rs 400 crore now. In order to achieve its revised target, it has also reduced the issue per share price to Rs 100 from Rs 150. The rights issue sale of Arvind Fashion will start from June 29 and will end on July 17, as per the company’s regulatory filing.
The company said, “The Board has approved the issue of up to 3,99,79,347 equity shares of the face value of Rs. 4 each at an issue price of Rs. 100 per equity share (including a premium of Rs 96 per Rights Equity Share) aggregating up to Rs. 399.79 crore to all the existing equity shareholders of the company on the record date, March 18, 2020, on a rights basis”.
Director of Arvind Fashions Limited, Kulin Lalbhai said, “With the opening up of the economy, our offline and online sales are seeing a growth momentum. The infusion of capital of about Rs. 399.79 crores through the Rights Issue will help the Company stabilise its operations and cash flow”.
The company said, “Promoters of the company will fully subscribe to their rights entitlement and will reserve their right to subscribe to any additional equity shares in case the issue is under-subscribed”.