Hela Apparel Holdings PLC has successfully raised Rs. 1,596,826,135 through its recent rights issue, marking a significant step in the company’s financial strategy. The issue offered 319,365,227 Ordinary Voting Shares to existing shareholders on a proportional basis and was oversubscribed, showing strong backing from shareholders, including the company’s top three stakeholders.
The funds raised will primarily be used to reduce a portion of the company’s existing bank borrowings, as outlined in the shareholder circular dated 8 August 2024. This move is seen as the first phase of Hela’s capital augmentation strategy aimed at strengthening its balance sheet for future growth.
CT CLSA Capital Ltd. acted as managers for the rights issue, with FJ&G de Saram providing legal advisory services and SSP Corporate Services Ltd. handling registrar duties.
The company’s Board of Directors has indicated that further capital raises will be part of its ongoing strategy, with details to be announced in the future.