GIC Singapore to invest Rs 2,195 cr in Aditya Birla Fashion and Retail

The board of Aditya Birla Fashion and Retail (ABFRL) approved a preferential issuance of equity and warrants to an affiliate of GIC, Singapore's sovereign wealth fund (GIC).

GIC will first invest Rs. 770 crore (US$ 99.25 million) in equity and warrant subscriptions, followed by up to Rs. 1,425 crore (US$ 183.67 million) in one or more tranches within 18 months upon warrant exercise. Post investment, GIC will own approximately 7.5% equity stake in ABFRL, while Aditya Birla Group will hold a 51.9% stake.

The funds will be used by ABFRL to accelerate its growth engine, which is built on the strength of its current businesses as well as a rapidly evolving play in emerging high-growth business models.

“Indian apparel industry is set for robust long-term growth due to strong fundamentals of a large and growing middle class, favourable demographics, rising disposable incomes and aspiration for brands," said Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group.

ABFRL has a proven track record of building brands, and its new business lines, such as innerwear and ethnic wear, benefit from strong structural tailwinds. GIC is confident that the company is well-positioned to continue its transformation into a future-ready consumer company powered by India's growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.