Hela Apparel to raise Rs. 1.6 b via Rights

Hela Apparel Holdings PLC has announced a Rights Issue to raise Rs. 1.6 billion to retire part of the Group’s debt.

Its Board has resolved to issue 319.365 million shares at Rs. 5 each via a Rights Issue of eight new shares for every 33 held. The move is aimed at raising Rs. 1.596 billion. The current stated capital of the company is Rs. 5.78 billion consisting of 1.317 billion ordinary voting shares.

Funds raised will be utilised to a subsidiary to enable it to settle existing bank borrowing.

Hela Apparel Board said the Rights Issue will be the first phase of the Company’s capital augmentation strategy to strengthen its balance sheet and position the Hela Group for profitable growth. The subsequent capital raising will be determined and announced at a later date, Hela added.

The Issue is subject to regulatory and shareholder approval.