Mumbai: Arvind Fashion's rights issue to raise Rs 400 crore was subscribed 1.03 times, a day ahead of its closure even as its share price fell 5% on the Bombay Stock Exchange.

The retailer, that has a portfolio of branded apparel brands such as Calvin Klein, Tommy Hilfiger, US Polo Assn, Arrow, Gant and Nautica had announced the ratio would be 62 equity shares for every 91 equity shares held. Earlier this month, the company's board had approved the launch of rights issue from June 29, which was earlier deferred in March. Size of the rights issue was also increased from around Rs 300 crore and will close on July 17.

Last week, Flipkart acquired a minority stake in Arvind Youth Brands for Rs 260 crore and the cash Rs 660 crore infusion will provide liquidity to manage FY21 cash-burn and reduce debt slightly.

The company posted a 39% revenue fall during the fourth quarter while EBITDA loss was Rs 92 crore. At present, 75% of stores are operational with June sales reaching 30% of pre-covid levels.