Aditya Birla Fashion and Retail Limited (ABFRL) announced that the market regulator SEBI has given them an exemption from listing shares worth Rs 2,195 crore that were allotted to Caladium Investment Pte Ltd, a foreign portfolio investor.
Based on the stock exchanges’ in-principle approval, the Aditya Birla Group firm had made an application to the stock exchanges who applied to SEBI for an exemption under Rule 19(7) of the SCRR from Rule 19(2)(b) in regard to the proposed listing of warrants under the Company’s preferential offering.
It stated, “In this regard, we wish to inform you that SEBI vide its letter dated September 7, 2022 to the Stock Exchanges that it has granted relaxation to the Company from applicability of Rule 19(2)(b) of the SCRR for Preferential Issue of listed warrants.”
Exemptions from making public issue for listing of securities distinct from the current listed securities are allowed to listed businesses under SCRR rule 19(2) (b). ABFRL had previously announced plans to raise up to Rs 2,195 crore from Singapore’s sovereign wealth fund GIC on May 24. GIC will invest Rs 770 crore now for equity and warrant subscriptions, followed by up to Rs 1,425 crore in one or more tranches within 18 months following warrant exercise. Following the completion of the investment, GIC will own a 7.5 percent equity stake in ABFRL.
Following the purchase, Aditya Birla Group will own 51.9 percent of the company. ABFRL, a division of Madura Fashion and Lifestyle, is a portfolio of leading apparel brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England. While its foreign brand portfolio includes The Collective, India’s leading multi-brand retailer of international brands, Simon Carter, and select mono-brands such as Forever 21, American Eagle, Ralph Lauren, Ted Baker, and Fred Perry.