GIC Takes A Bite From Aditya Birla Fashion’s Pie

Photo by sheri silver on Unsplash

Don’t you think that businesses from overseas are making sheep’s eyes at Indian fashion brands – a bit too often lately? 

Next on the cards is Singapore’s GIC sovereign wealth fund, which is picking up a 7.5% stake in Aditya Birla Fashion & Retail (ABFRL). The stake worth Rs.2,195 Cr was raised by way of preferential issue of equity and warrants to an affiliate of GIC. Aditya Birla Group will hold a 51.9% stake in the company.

Moolah, please

ABFRL recently underwent a double-digit revenue growth in the last quarter, surpassing pre-pandemic levels to reach Rs. 2283 Cr. (Tbh, shopping was the only therapy during the pandemic!)

The company has also been strengthening its fashion portfolio over the last 2 years by acquiring premium labels like Sabyasachi (Bingo! The brains behind Deepika and Ranveer’s wedding) and Tarun Tahiliani. It also acquired 51% of House of Masaba Lifestyle earlier this year and signed a long-term licensing agreement to exclusively sell Reebok products in India and other ASEAN countries.

Pressing The Right Buttons 

Funds raised will be used for growth and to boost ABFRL’s digital platforms for direct-to-consumer sales.

Too long? Here’s a one-liner: Aditya Birla Fashion to raise Rs. 2,195 Cr from Singapore’s Sovereign Wealth Fund GIC; holds a 51% stake for itself, while GIC will own 7.5% in the company. 

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