Aditya Birla Fashion's Rs 995 crore rights issue to open on July 8

Aditya Birla Fashion and Retail will be launching a rights issue at Rs 995 crore on July 8.

It will allow existing shareholders of the company to subscribe to shares at a price of Rs 110 per share. The rights issue will close on July 22, the company said in regulatory filings at stock exchanges.

The proceeds of the rights issue will largely be used to repay in whole or part some of the existing loan facilities availed by the company.

As per terms of payment of issue price, the investors will have to pay 50 per cent of the subscription amount upfront with the rest payable in two tranches of 25 per cent each in January 2021 and July 2021.

Existing shareholders are eligible for nine shares for every 77 existing shares held by them.

The promoter group, led by Kumar Mangalam Birla, will fully subscribe to the extent of their rights entitlement and do not intend to renounce such rights except to the extent of renunciation within the promoters and promoter group.

It will also subscribe to any additional equity shares in the issue for ensuring subscription to the extent of at least 90 per cent of the issue.

( With inputs from ANI )