Arvind Fashions to raise Rs 400 crore to stabilise operations, cash flow
Fashion retailer Arvind Fashions plans to raise Rs 400 crore ($52.9 million) capital, via rights issue to stabilise its operations and cash flow, due to the disruptions caused by the Covid-19 pandemic.
Arvind Fashions has seen its apparel brand sales drop during the lockdown and struggling to meet the operational costs, including payment of salaries to staff. The capital raise couple with the reopening of the economy is expected to give the firm the much-support to overcome the crisis.
Arvind’s board has approved the issue of up to 3,99,79,347 equity shares of face value of Rs 4 each at an issue price of Rs 100 per equity share aggregating up to Rs 399.79 crore to all the existing equity shareholders of the company.
Commenting on the rights issue, Kulin Lalbhai director at Arvind Fashions Limited, in a statement 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 crore through the rights issue will help the Company stabilise its operations and cash flow.”
The Bengaluru-based Arvind Fashions retails a range of international apparel brands in India including Gap, Aeropostale, Arrow, and Tommy Hilfiger among others. The business recently ceased retailing brands Elle, Gant, Izod, and Nautica.
Copyright © 2021 FashionNetwork.com All rights reserved.