Mumbai: The ₹400 crore rights issue of Arvind Fashions Ltd was completely subscribed on Thursday, according to data from stock exchanges.
The rights issue offering closes on 17 July.
As per stock exchange data, the rights offering received bids for 4.10 crore shares, slightly higher than the 3.99 crore shares on offer. The rights issue shares are priced at ₹100 per share.
On Thursday, shares of Arvind Fashions closed at Rs134.75 apiece, down 4.97% on the BSE.
Arvind Fashions manages international and local fashion apparel brands in the country such as US Polo Assn., Arrow, GAP, Tommy Hilfiger, Flying Machine, Aeropostale, The Children’s Place and Ed Hardy. It owns and runs the value fashion retail chain, Unlimited; apart from a partnership with beauty retailer Sephora for its India business.
The company plans to use Rs50 crore for repayment/prepayment of loans availed by the company. It plans to invest Rs250 crore from the proceed in its subsidiary Arvind Lifestyle Brands Ltd, while the rest of the proceeds will be used for general corporate purposes.
The company is also raising money from other avenues too.
On 9 July, Flipkart Group bought a minority stake in Arvind Fashions Ltd’s recently created subsidiary Arvind Youth Brands for ₹260 crore. The company, which owns denim brand Flying Machine, plans to build the brand online and in India's smaller markets.
The four-decade old Flying Machine brand has been selling on Walmart-backed Flipkart and Myntra for over six years.
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