"The ethnic wear segment is a large and growing market with a significant opportunity to build scale. The combined expertise of Tarun Tahiliani and ABFRL will enable the new brand to make a strong impact in the market.
The promoter and promoter group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance.
ABFRL said it plans to use this capital to strengthen its balance sheet and accelerate its growth trajectory.
Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra.
The board, which is meeting on Wednesday, is set to approve the plan to raise Rs 1,000 crore by way of a rights issue.
The development is subject to the approval of the shareholders at the ensuing thirteenth annual general meeting of the company
