MUMBAI: Aditya Birla Fashion and Retail Ltd (ABFRL) is grappling with two things primarily. On one hand, it has to deal with the adverse consequences of covid-19 and on the other hand, it has high debt.
The branded apparel company’s net debt at the end of March stood at ₹2,500 crore. Reducing debt is essential. ABFRL is looking to raise ₹1,000 crore through a rights issue.
One of the main aims of this issue is to lower the debt. “Debt build-up is a concern, though we believe some unwinding should happen in financial year 2021," said analysts from Kotak Institutional Equities in a report on 28 May.
Meanwhile, ABFRL’s March quarter results, announced on Wednesday after market hours, show the hit to financials because of covid-19.
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