Arvind Fashions to launch 300 crores rights issue

The board of directors of Arvind Fashions, has approved raising Rs 300 crores through a rights issue. This is to pare some debt of the company and meet general corporate purposes including capital expenditure and working capital requirements of the company.

For the second quarter of the current fiscal Arvind had a standalone net loss of Rs 1.31 crores on a total income of Rs 281.21 crores. The company has decided to exit non-strategic brands and align primary and secondary sales. Brand exits will be completed in the third quarter. On a consolidated basis, the company posted a net loss of Rs 45 crores on a total income of Rs 1,125 crores. For the first half period of the current fiscal, April-September 2019, the company registered a net loss of Rs 141 crores, with a total income of Rs 2028 crores.

In fiscal 2019-20, the company will continue to focus on working capital efficiency through disciplined efforts around debtors’ control and reduction in inventory. It continues to remain optimistic about the future of its business as it has taken the necessary actions to make the company future ready with right capabilities and fit for profitable growth. Though the external environment continues to remain volatile, the company remains optimistic about its future given its inherent strengths.