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

The Board of Directors of the company said today in a stock exchange filing that “We wish to inform you that, the Company proposes to raise funds by issuing 5,000 listed, unsecured, rated, redeemable non-convertible debentures of face value of ₹10,00,000 (Rupees Ten Lakh only) each issued at par aggregating to ₹5,00,00,00,000 (Rupees Five Hundred Crores Only), on private placement basis, 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 that ended in September 2022 or Q2FY23, Aditya Birla Fashion and Retail reported its highest quarterly revenues ever, up 50% YoY at Rs. 3075 Cr. with a 33% growth over pre-COVID levels. For the quarter, consolidated EBITDA grew to Rs. 418 Cr. 

Based on the outlook for the next financial year, Aditya Birla Fashion and Retail Ltd. (ABFRL) said in its annual report that “The next fiscal is going to be a race to normalcy for the industry with re-invigorated market sentiments. Your Company is looking at the new fiscal with cautious optimism around markets and consumer preferences. The Indian economy is headed towards a steady recovery, glimpses of which was evident during the festive season of FY22. As vaccination drives progress throughout the country, consumers are expected to get back to shopping with renewed confidence. As mobility picks up, the demand for categories including formals, occasion wear, festive wear and accessories will recover. For long term, India remains on a strong valve creation path considering the underlying growth drivers like favourable demographics, increasing per capita & disposable income and growing 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 foundation to support the ambitious growth plans that it chases. A strong and healthy balance sheet with a diverse and well-executed portfolio play will enable your Company to position itself as a leader across all fashion and lifestyle Segments, ranging from value, premium to luxury brands,”

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