ABFR to raise Rs 1250 crores; stocks may react

Fashion and style identity of the Birla Group, Aditya Birla Fashion and Retail is likely to be the stock of Aug 26 trade. Company which emerged after the consolidation of the branded apparel businesses comprising Madura Fashion division, Pantaloons Fashion and Retail and Madura Fashion & Lifestyle has been successful in managing the consolidation. The BSE 200 company, post consolidation was renamed as Aditya Birla Fashion and Retail Limited.

ABFR, on Aug 25, post market hours informed BSE, that the company is planning to raise upto to Rs 1250 crores through the issuance of non- convertible debenture on a private placement basis, in one or more tranches, during a period of 12 months from the conclusion of the Ninth Annual General Meeting, which is scheduled on September 7. Company will also increase its borrowing limit upto Rs 3500 crores for its business requirements.

Scrip of the company, on Aug 26, opened at Rs 162, and as at 9.20 am is up by 1.32 per cent. Shares of the company in the last 5 days have plunged by 3 per cent. However, in the last 1 month, shares have rallied by 9 per cent. Exactly a year ago, the scrip was at Rs 193.4, which was down by 16 per cent as compared to the current level. 52 High/Low stands at Rs 263/124.