India's Arvind Fashions Limited raises ₹439 cr for growth strategy

The marquee investors who participated in the fund raise are Akash Bhanshali, existing shareholders including ICICI Prudential Mutual Fund, various foreign institutional investors (including University of Notre Dame Du Lac, GP Emerging Markets Strategies LP and The Ram Fund LP), Ashish Dhawan and other investors. Aura Merchandise Pvt Ltd, a promoter entity, has also participated in the preferential issue for an amount of ₹40 crore.

With a focused strategy of profitable growth, AFL is unlikely to require any more funding in near to medium term, it said in a media release.

Speaking on the investment, Kulin Lalbhai, non-executive director, Arvind Fashions, said, “We’re extremely happy to have the confidence and strong support from our existing and new investors. This capital will go a long way in completely strengthening AFL’s balance sheet and help counter any potential COVID related uncertainties.”

Shailesh Chaturvedi, chief executive officer, Arvind Fashions, said, “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 and prestige beauty categories in the industry.”

The completion of the transaction is subject to necessary shareholder and SEBI approvals.

Fibre2Fashion News Desk (KD)