Arvind Fashions Limited (AFL), the retailer of brands such as Calvin Klein, Tommy Hilfiger and US Polo Assn, is raising Rs 200 crore on rights basis to strengthen its balance sheet this year, according to a report by TNN.
“The Board has approved issue of equity shares for an amount up to Rs 200 crore on rights basis. The Board evaluated various options and is of the view that rights issue would be an equitable mode of fund raising as it gives its shareholders an equal opportunity to participate in the growth of the Company. The Company intends to utilize the funds to meet its objectives of strengthening its balance sheet and for general corporate purposes, including working capital for growth,” AFL stated in a stock exchange filing to the BSE.
AFL on Wednesday widened its net loss to Rs 66.62 crore for the quarter ended December as the impact of the pandemic persists.
The casual wear and denim player reported a 14.22% drop in revenue in the third quarter at Rs 911.13. A year ago, it had sales of Rs 1062.28 crore with net loss of Rs 46.26 crore.
In a stock exchange filing, the fashion retailer, said revenue, however, grew sequentially by 106%, led by strong festive season and winter shopping, along with increased footfall across stores as lockdown gradually lifted and continuing progress in the ecommerce channel.