Arvind kicks off ₹500 crore QIP with 4.5% discount to market price

Arvind kicks off ₹500 crore QIP with 4.5% discount to market price


Textile-to-retail conglomerate Arvind has launched a qualified institutional placement (QIP) to raise around ₹500 crore, with an indicative issue price of ₹505 per equity share, according to the terms of the issue. The indicative issue price represents a discount of 4.53% to the company’s closing share price on August 3. The issue carries a lock-in period of 90 days.

The launch comes a month after the textile and apparel company received board approval to raise up to ₹600 crore through the issuance of equity shares or other eligible securities.

 

Also read: Nifty Outlook for August 4: New closing mechanism takes index past recent swing highs but can that sustain?

 

Board had cleared fundraising plan in July

On July 3, Arvind’s board approved a proposal to raise up to ₹600 crore through one or more permissible modes, including a qualified institutional placement.

The company had said the fundraising could be undertaken through equity shares, convertible or redeemable preference shares, fully or partly convertible debentures, non-convertible debentures with warrants, Global Depository Receipts (GDRs), American Depository Receipts (ADRs), Foreign Currency Convertible Bonds (FCCBs), or other eligible securities, either individually or in combination.

The proposed fundraising is to be carried out in one or more tranches, subject to shareholder approval and the receipt of the required regulatory and statutory approvals.

 

Also read: Paytm set for over ₹2,000 crore block deal as Saif Partners, Elevation Capital ready to pare 2.3% stake

 

Finance Committee authorised to decide terms

Arvind had said its Finance Committee was authorised to determine the timing, pricing, terms and other conditions of the proposed issue.

The board had also approved the initiation of a postal ballot process to seek shareholders’ approval for the capital raising proposal and cleared the draft postal ballot notice.Shares of Arvind ended 2.50% higher at ₹526.05 on Monday ahead of the launch of its qualified institutional placement. Despite a 7.05% decline over the past month, the stock has gained 32.72% in the last three months, 66.83% year-to-date, and 67.63% over the past year. Over a three-year period, the stock has delivered a return of 283.85%.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *