Mumbai, Jun 29 (PTI) The board of Aditya Birla Fashion & Retail on Monday approved Rs 995-crore rights issue that will open on July 8.

In an exchange filing, the company said it will issue 9.05 crore partly-paid up equity shares, having face value of Rs 10 each, aggregating to Rs 995 crore.

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The promoters and promoter group will be fully subscribing to the extent of their rights entitlement and also are ready to subscribe to any additional equity from the issue to ensure at least 90 per cent subscription, the statement said.

The equity shares will carry a premium of Rs 100 a share each, taking the issue price to Rs 110 a share which will have the first payout in January 2021 and second in July 2021, the company said, adding the issue will open on July 8 and close on 22.

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The company has also fixed July 1 as the record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the issue, and that the existing shareholder will get nine partly-paid equity shares for every 77 existing fully-paid shares through the issue.

Assuming full subscription, the paid up equity will go to 86.44 crore from 77.39 crore and that the face value will remain at Rs 10 per share both pre- and post-issue.

The company shares closed down 1.3 per cent at Rs 127.65 on the BSE whose benchmark Sensex shed 0.6 per cent.

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