Arvind Fashions Rs 400 Crore Rights Issue Fully Subscribed

A day before the last day of the issue, the Rs 400 crore rights issue of Arvind Fashions Ltd was completely subscribed, according to data from the stock exchanges.

The rights issue offer loses on 17 July.

As per stock exchange data on Thursday, the issue received bids for 4.10 crore shares, slightly higher than the 3.99 crore shares on offer.

Arvind Fashions has a portfolio of popular branded apparel brands such as Calvin Klein, Flying Machine, Tommy Hilfiger, US Polo Assn, Arrow, Gant and Nautica. It also owns and runs the value fashion retail chain, Unlimited and has a partnership with beauty retailer Sephora for its India business.

The rights issue shares of the are priced at Rs 100 per share.

On Thursday, shares of Arvind Fashions closed 4.97 percent lower at Rs 134.75 on BSE.

The rights issue was approved by the company's board on 29 June. Size of the rights issue was also increased from Rs 300 crore planned earlier.

The company plans to use Rs 50 crore of the rights issue proceeds for repayment/prepayment of loans availed by the company. It plans to invest Rs 250 crore from the proceeds in its subsidiary Arvind Lifestyle Brands Ltd, while the rest will be used for general corporate purposes.

On 9 July, Flipkart bought a minority stake in Arvind Fashions Ltd's recently created subsidiary Arvind Youth Brands for Rs 260 crore. Arvind Youth, which owns denim brand Flying Machine, plans to build the brand online and in India's smaller markets.