Arvind Fashions Ltd has pushed back plans to raise capital via a rights issue, the branded apparel company demerged from textile maker Arvind Group informed the stock exchanges on Thursday.
“Considering the current countrywide lockdown to combat the spreading of novel Coronavirus and overall market conditions, the committee of directors decided to defer the rights issue,” the company said in a stock-exchange filing.
Arvind Fashions, which counts Renuka Ramnath-led Multiples Private Equity as its backer, had approved raising Rs 300 crore in equity capital on March 12. The company was to issue 19.97 million shares at Rs 150 per share through the rights issue.
Since the public announcement, Arvind Fashion’s stock has fallen over 50% to Rs 126.90—its lowest ever—on the National Stock Exchange. The stock ended at Rs 145.10 apiece on Thursday, up 0.42% from the previous close.
Multiples PE, directly and through its investment arms, owns an 11.03% stake in the company.
Arvind Group announced a demerger of is engineering equipment business from the parent company in late 2017 to renew its focus on textiles to unlock shareholder value.
The demerger was effective last year and shares of demerged entities — Anup Engineering and Arvind Fashions — listed on the stock exchanges in March 2019.
Previously, Multiples had agreed in 2016 to invest about Rs 740 crore ($110 million then) in Arvind Fashions. Multiples was already an investor in Arvind Ltd since January 2014.
Arvind Fashions has a portfolio of branded apparel brands under its roof such as Calvin Klein, Tommy Hilfiger, US Polo Assn, Ed Hardy, Hanes, Arrow, Gant and Nautica.