Aditya Birla Fashion & Retails Right Issue (July 2020) Review

Published on Tuesday, July 21, 2020 by Dilip Davda

Aditya Birla Fashion & Retails Right Issue (July 2020) Review

Aditya Birla Fashion & Retails (ABFRL) is one of India's largest pure-play fashion and lifestyle companies in terms of revenue with a strong bouquet of leading fashion brands and retail formats across various segments and categories with pan-India distribution (source: Wazir Advisors Report). Company's portfolio comprises the Madura Segment which includes lifestyle brands, fast fashion, global brands, innerwear and other businesses, and the Pantaloons Segment. While Madura Segment holds the branded apparel and accessories business, Pantaloons Segment houses the large format retail business under the Pantaloons brand.

The company has a pan India distribution network comprising of 3,031 stores covering a footprint of approximately 8.04 million square feet, over 25,000 multi-brand outlets and 6,514 SIS across departmental stores, as on March 31, 2020.

ABFRL is offering 90465693 equity shares of Rs. 10 each at a price of Rs. 110 per share as a rights offer to its existing shareholders in the ratio of 9 shares for every 77 shares held as on record date of 01.07.2020. Issue has already opened for subscription on 08.07.20 and is closing on 22.07.20. Shareholders opting for applying full entitlement can also bid for additional shares which will be allotted in proportion of availability. Applicants have to pay Rs. 55 per share on application and the balance Rs. 55 in two installments of Rs. 27.50 each as allotment and final call money when called by the company. ABFRL will be raising Rs. 995.12 cr. from this offer. Amount so raised will be used for repayment of certain borrowings (Rs. 745 cr.), General corpus needs (Rs. 244.26 cr.) and the balance money (Rs. 5.86 cr.) will be used as issue related expenses.

This issue is jointly lead managed by ICICI Securities Ltd., SBI Capital Markets Ltd., Axis Capital Ltd., BNP Paribas and CLSA India Pvt. Ltd. while Link Intime India Pvt. Ltd. is the registrar to the issue. Post allotment, shares will be listed on BSE and NSE.

Post issue, company's current paid up equity capital of Rs. 773.97 cr. will stand enhanced to Rs. 864.45 cr.

For the year last two fiscals, on a consolidated basis the company has posted turnover/net profit (loss) of Rs. 8182.50 cr. / Rs. 321.22 cr. (FY19) and Rs. 8853.16 cr. / Rs. -(165.02) cr. for (FY20). For FY20 it has done higher provisioning for finance cost Rs. 424.71 cr. (against Rs. 187.42 cr. for FY19) and Rs. 885.31 cr. for depreciation and amortization (against Rs. 282.33 cr. for FY19).

Thus its issue price is at a negative P/E. However, considering group's fancy, issue is expected to be well responded. Its NAV stood at Rs. 13.80 as on 31.03.20.

On share price movements, it was quoted at Rs. 127.65 on the last cum-right trading day (29.06.20), Rs. 125.35 on first ex-right trading day (30.06.20). Its last traded price is Rs. 113.45 (20.07.20).

With this offer price, the company is aiming at a market cap of Rs. 9508.95 cr.

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. Above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in these offers.

(SEBI registered Research Analyst-Mumbai).

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10. KAMLESH KUMAR BHOJWANI   I Like It. |Report Abuse|  Link|Aug 7, 2021 9:17:12 PMReply
9. Rohit Varma   I Like It. |Report Abuse|  Link|Oct 23, 2020 9:01:37 PMReply
Customer care number 083-89980562...
8. Madan Lal Anchaliya   I Like It. |Report Abuse|  Link|Feb 12, 2021 11:25:05 AMReply
I was alloted 40 shares.iwas to pay rs1100 for first call.Sbi Gandhidham (00373)main branch
has applied ASBA on my saving a/c ,but till date the call money has not debited to my a/c.Inthis case i sent e mail on the given id abfri.call@linkintime.co.in with scanned copy of sbi acknowledgement. But it was bounced back undelivered due to wrong e mail address.

Kindly advise what to do in the matter.
7. Mayank Maheshwari   I Like It. |Report Abuse|  Link|Jan 18, 2021 1:16:57 PMReply
How to make payment for first call through ASBA. I tried through SBI website, HDFC Bank website, both of them are not providing ASBA option for ABFRL-RE first call.
Please help
7.1. Kedar   I Like It. |Report Abuse|  Link|Jan 23, 2021 4:53:40 AM
Kuch hua ? Can u help.
This is so unfair, we dont know all this process.
6. Rakesh   I Like It. |Report Abuse|  Link|Jul 23, 2020 9:15:24 PMReply
I had bought 500 ABFRL Re from NSE @ 8.20 and suddenly stopped trading how to exit my position kindly guide
6.2. Rameshbhai Manilal Patel   I Like It. |Report Abuse|  Link|Aug 20, 2020 11:45:28 AM

Respected Sir,
On date of 14/07/2020,
I purchased 300 share of 'ABFL-RE' from NSE
The Due date was 29/07/2020 for Right Issue's call money. Unfortunately, broker of dhanlakshmi didn't cater me proper information about call money of Right Issue. Therefore, Owing to lack of knowledge, I could not pay it.
Actually, I came to know about this when share was debited from my account on date of 30/07/2020.
Now I want to get back my share by paying the amount of Right Issue.
Hence, kindly request to you please help me to resolve this query.

6.3. Chirag   I Like It. |Report Abuse|  Link|Aug 22, 2020 6:53:13 PM
Rakesh kya hua apke re shares ka bcz m b same condition me faass gya hu
5. Suresh   I Like It. |Report Abuse|  Link|Jul 30, 2020 7:06:24 PMReply
I have brought 654 + 410 shares after record date... and i applied for 1064.. now how many shares they will credit to me
4. AVA   I Like It. |Report Abuse|  Link|Jul 28, 2020 2:44:19 PMReply
I am not an existing share holder for ABFRL. But i had bought few Rights Issue shares and applied for the same. Can someone please explain as to how and when the allocation of shares will start?
4.1. Varun   I Like It. |Report Abuse|  Link|Jul 29, 2020 10:52:36 AM
It has already started from today
3. Sanjeev Mehta   I Like It. |Report Abuse|  Link|Jul 28, 2020 3:24:53 PMReply
Can Somebody help me for this?
I also bid for ABFRL but I had never bought this share. I am not an existing shareholder. What should I do now?
Shares have not been allocated
The amount has not been returned
Account Lien reference no is blank
Anyone can guide me what should I do now. I have done it through axis bank netbanking.


2. MURALI   I Like It. |Report Abuse|  Link|Jul 24, 2020 4:52:59 PMReply
am not existing share holder of AB FASHION but by mistake bought IPO shares of last week from my sbi bank.

issue is closed on 22th but the amount still reflecting under lien amount.
2.1. Y S Yadav   I Like It. |Report Abuse|  Link|Jul 28, 2020 9:57:43 AM
I too committed the same mistake. I
am not existing share holder of AB FASHION but by mistake bought IPO shares of last week from my sbi bank.

issue is closed on 22th but the amount still reflecting under lien amount.
1. Small Investor   I Like It. |Report Abuse|  Link|Jul 27, 2020 12:30:51 PMReply
Any information on the ABFRL Rights Issue Allotment date? Pl. provide.