Arvind Fashions' rights issue to close today

Arvind Fashions Limited’s rights issue offer for Rs 399.79 crore is closing on Friday i.e. July 17, 2020, which opened on June 29, 2020.

The size of the rights issue was revised to Rs 399.79 crore from Rs 299.64 crore. The issue had been fully subscribed by the end of Thursday i.e. July 16, 2020 as per data available on the bourses.

Earlier, the rights issue was planned to set open from March 30, 2020 to April 17, 2020 but due to COVID-19 led nationwide lockdown, the company’s board of directors decided to defer it.

As per the revised schedule, the issue price was decided to be Rs 100 per rights equity share, which includes a premium of Rs 96 per rights equity share. The face value of the equity share is Rs 4. Also, the entitlement ratio is set at 62 fully paid-up equity shares for every 91 equity share held by the eligible shareholders as on the record date i.e. March 18, 2020.

The management of the company stated that the funds raised through rights issue will help the company to stabilise its operations and cash flows.

On June 29, 2020, when the rights issue offer opened, the stock of Arvind Fashions was trading at Rs 172.15. Since then, it has dipped by approximately 26 per cent. For the last five days, the stock has been hitting a lower circuit of 5 per cent daily.