The board of directors of Arvind Fashions Limited (AFL) at its meeting held on Saturday has approved the preferential allotment of equity shares aggregating to ₹ 439 crore to various marquee investors, including the promoters.

The shares have been issued at a price of ₹218.50 against ₹240 apiece at close on Friday on BSE.

The marquee investors who participated in the fundraising 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 L.P., The Ram Fund L.P), Ashish Dhawan, and other investors.

Aura Merchandise Pvt. Ltd., a Promoter entity, has also participated in the preferential issue for ₹40 crore.

“With this fund raise, it completes the capital requirement needed for growth and navigating any uncertainties. With a focused strategy of profitable growth, the company is unlikely to require any more funding in near to medium term,” the company said in a statement

Kulin Lalbhai, Non-Executive Director, Arvind Fashions, said, “This capital will go a long way in completely strengthening AFL’s balance sheet and help counter any potential Covid-related uncertainties.”

The company has a portfolio of brands such as US Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale and Ed Hardy

Shailesh Chaturvedi, Chief Executive Officer, Arvind Fashions, said, “Business momentum continues to be strong, and we are focussed on growing our zix high conviction brands. This capital will help significantly deleverage the company’s balance sheet and adequately fund the growth in the coming quarters, thereby, further strengthening our leadership in the casualwear, denim & prestige beauty categories in the industry.”

The completion of the transaction is subject to necessary shareholder & SEBI approvals. Metta Capital acted as the exclusive financial advisor to AFL for this transaction.