This will ''significantly strengthen'' the balance sheet and allow the business to pursue its growth strategy while insulating it from any COVID related uncertainties, AFL said in a statement. ''The Board of Directors of AFL at its meeting held today (Saturday) approved the preferential allotment of equity shares aggregating to Rs 439 crore to various marquee investors including promoters at the price of Rs 218.50,'' it said. 

The investors who participated in the fundraise 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, The Ram Fund LP and other investors. Aura Merchandise, a promoter entity also participated in the preferential issue for an amount of Rs 40 crore, it added. ''With this fundraise, it completes the capital requirement needed for growth and navigating any uncertainties,'' it said adding ''the company is unlikely to require any more funding in near to medium term.'' 

AFL Non-Executive Director Kulin Lalbhai said this capital will go a long way in completely strengthening AFL’s balance sheet and help counter any potential COVID related uncertainties. However, the company also said the completion of the transaction is subject to necessary shareholder & SEBI approvals. Last month, AFL had sold its ''unlimited'' retail chain to value fashion retailer V-Mart Retail Ltd for an estimated Rs 150 crore in an all-cash transaction. AFL has a portfolio of both international and indigenous brands which includes US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale and Ed Hardy. It is also in the beauty retailing space in partnership with Sephora.