Aditya Birla Fashion To Open Rs 995 crore Rights Issue On July 8

Aditya Birla Fashion and Retail (ABFRL) on Monday announced its decision to open Rs. 995 crore rights issue for subscription next week. The record date for the offering has been fixed as July 1. The issue will open for subscription on July 8 and will close on July 22.

Aditya Birla Fashion To Open Rs 995 crore Rights Issue On July 8

The price for the issue has been set at Rs. 110 for each fully paid share of face value Rs. 10, which is a 14% discount to its last closing price of Rs. 128.

Through the rights issue, the company plans to issue 9,04,65,693 partly-paid up equity shares. Further, the rights entitlement ratio has been fixed at 9:77, implying existing shareholders will be eligible to get 9 shares for every 77 shares held.

Similar to RIL's rights issue, for subscribing to the rights issue of ABFRL, eligible shareholders as on the record date would need to pay 50% of the issue price i.e. Rs. 55 at the time of subscription, 25% amount i.e. Rs. 27.5 in January 2021 and the remaining 25% Rs. 27.5 in July 2021.

Further, participation by the promoter or members of the promoter group, over and above their rights entitlement, will not be deemed as a breach of the minimum public shareholding norms as specified under relevant laws.

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