Private Equity

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Aditya Birla Fashion raises Rs.2,195-Cr from GIC for 7.5% stake

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GIC, Singapore's sovereign wealth fund, will invest INR 2,195 crore in Mumbai-based, publicly listed Aditya Birla Fashion and Retail Ltd (ABFRL) in exchange for a 7.5 % stake. GIC will initially invest INR 770 crore for a subscription of equity and warrants. It will invest the remaining INR 1,425 crore over the next 18 months in one or more tranches. Aditya Birla Group will own a 51.9 % stake in the company after the transaction is completed. ABFRL plans to use this capital to accelerate its growth engine built around strength of its current businesses along with a rapidly evolving play in emerging high-growth business models. A part of the Aditya Birla Group, ABFRL owns fashion brands including Louis Philippe, Van Heusen, Allen Solly, and Peter England. This deal follows the INR 1,500 crore investment by Flipkart Investments Pvt Ltd (FIPL) in ABFRL. FIPL owns a 7.8% stake in the INR 8,136 crore retail company. ABRL has a network of 3,468 exclusive stores, 6,515 points of sale in department stores, and 28,585 multi-brand outlets across India.