In the wake of the pandemic’s impact on business operations and cash flows, Aditya Birla Fashion and Retail Ltd will seek shareholders approval for raising its borrowing limit up to Rs 4,500 crore in its upcoming Annual General Meeting (AGM) on September 7, among other proposals.
In a regulatory filing on Sunday, the company said that its ninth AGM, in 2016, the shareholders authorised the company’s Board of Directors to borrow from time to time, any sum of monies, provided that the total outstanding amount so borrowed shall not, at any time, exceed the limit of Rs 3,500 crore.
Considering the adverse effect of COVID-19 pandemic on business operations, cash flows and resultant slowdown of economic activities, the said fund requirement is crucial to strengthen the company’s existing business operations and growth plans, it said.
“This is also required to ensure adequate liquidity in the uncertain times. Keeping the same in view, it is proposed to increase the overall borrowing limits of the company under the provisions of Section 180(1)(c) of shareholders of the company at their thirteenth annual general meeting,” the company said in the filing.
It also said that the board has proposed to seek approval of shareholders by way of special resolution to authorise the board to enhance the borrowing limits of the company in such form, “manner and ranking as may be determined by the Board of Directors from time to time, in consultation with the lenders”.