Arvind Fashions Ltd (AFL), a leading Indian apparel brand, famous for its leading casual and denim manufacturing made an official statement announcing that the company has raised Rs 439 crores from various investors, including promoters. This move will strengthen the company financially, as it is coping with pandemic-led uncertainties, the statement said.
Further the statement mentioned that the Board of Directors of AFL at its meeting approved the preferential allotment of equity shares aggregating to Rs 439 crore to various marquee investors including promoters. The investors who participated in the fundraise are Akash Bhanshali, some of the existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors including University of Notre Dame Du Lac, GP Emerging Markets Strategies LP, The Ram Fund LP and other investors.
The statement added that Aura Merchandise, a promoter entity also participated in the preferential issue for an amount of Rs 40 crore. Arvind Fashions reported a net loss of Rs 182.49 crore in Q1 June 2021 as compared to a net loss of Rs 213.13 crore in Q1 June 2020. Net sales surged 343.8% to Rs 319.24 crore in Q1 FY22 over Q1 FY21.
Shailesh Chaturvedi, Chief Executive Officer, Arvind
Fashions, commented on this matter “Business momentum continues to be strong and we are focused on growing our 6
high conviction brands. This capital will help significantly deleverage the Company’s balance sheet and
adequately fund the growth in the coming quarters, thereby, further strengthening our leadership in the
casualwear, denim & prestige beauty categories in the industry.”
AFL has a portfolio of both Indian and international brands which includes US Polo, Tommy Hilfiger, Calvin Klien, Flying Machine, Aerpostale and Ed Hardy.