External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

Equity Bottom-Up

We expect gross debt to reduce from Rs 903 crore in FY21 to Rs 500 crore by FY23E. The management's focus on prudent capital allocation, stringent working capital policy is expected to translate to positive FCF by FY23E, with pre Ind-AS 116 EBITDA margin of ~7%. We change our stance from REDUCE to HOLD owing to strengthened b/s. Better capital allocation towards profitable brands with improvement in margin profile, debt reduction would be key monitorables. We value...<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

We expect gross debt to reduce from Rs 903 crore in FY21 to Rs 500 crore by FY23E. The management's focus on prudent capital allocation, stringent working capital policy is expected to translate to positive FCF by FY23E, with pre Ind-AS 116 EBITDA margin of ~7%. We change our stance from REDUCE to HOLD owing to strengthened b/s. Better capital allocation towards profitable brands with improvement in margin profile, debt reduction would be key monitorables. We value...Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Arvind Fashions: Capital Restructuring to Aid in Navigating Uncertainties

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Following a couple of days of speculation, on 30 April, <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a> made an <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/DC94A36A-DC93-43CC-989A-14A21648B3FC-185520.pdf" target="_blank" rel="noopener">announcement</a> of an intended 1:15 rights offering (i.e. rights to buy one new share for every 15 owned) with the intention to raise INR 53,125 crore at an offer price of INR 1,257 a share. This is the first time in 29 years that RIL is tapping the market for equity-like capital. 
The promoter and promoter group led by Mukesh Ambani will need INR 26,600 crore to subscribe to its portion of the rights issue, but they confirmed they would subscribe to the full extent of their aggregate rights entitlement. In addition, they announced  they will also subscribe to all the unsubscribed shares in the Issue.
On 6 May, SEBI <a href="https://www.sebi.gov.in/legal/circulars/may-2020/relaxations-relating-to-procedural-matters-issues-and-listing_46652.html" target="_blank" rel="noopener">announced</a> relaxed one-time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations") pertaining to Rights Issues announced before July 31, 2020. This is a one-time measure allowing companies to shore up capital during the COVID-19 situation [Note: today SEBI also <a href="https://www.sebi.gov.in/legal/circulars/may-2020/additional-relaxation-in-relation-to-compliance-with-certain-provisions-of-sebi-listing-obligations-and-disclosure-requirements-regulations-2015-covid-19-pandemic_46661.html" target="_blank" rel="noopener">relaxed</a> the Listing Obligations and Disclosure Requirements].
Monday (actually, midnight on Saturday), the company <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/2739bb07-c43c-4e52-ad84-1156cd22b3dc.pdf" target="_blank" rel="noopener">announced</a> the record date to be 14 May, and that the BSE and NSE had given in-principle approvals to issue the rights and the resulting 422,626,894 equity shares (or 42,26,26,894 equity shares). 
Yesterday was the last day with rights, and the company issued a '<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/C416814A-BBC9-4E16-BB9E-30A4D7E5BB35-102302.pdf" target="_blank" rel="noopener">synopsis</a>' of how they work. 
Today the shares went ex-.
These rights are a bit weird. They are "partly paid-up" rights. There is a down payment, then a capital call.
It is worth understanding the details.

Following a couple of days of speculation, on 30 April, Reliance Industries (RIL IN) made an announcement of an intended 1:15 rights offering (i.e. rights to buy one new share for every 15 owned) with the intention to raise INR 53,125 crore at an offer price of INR 1,257 a share. This is the first time in 29 years that RIL is tapping the market for equity-like capital. 
The promoter and promoter group led by Mukesh Ambani will need INR 26,600 crore to subscribe to its portion of the rights issue, but they confirmed they would subscribe to the full extent of their aggregate rights entitlement. In addition, they announced  they will also subscribe to all the unsubscribed shares in the Issue.
On 6 May, SEBI announced relaxed one-time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations") pertaining to Rights Issues announced before July 31, 2020. This is a one-time measure allowing companies to shore up capital during the COVID-19 situation [Note: today SEBI also relaxed the Listing Obligations and Disclosure Requirements].
Monday (actually, midnight on Saturday), the company announced the record date to be 14 May, and that the BSE and NSE had given in-principle approvals to issue the rights and the resulting 422,626,894 equity shares (or 42,26,26,894 equity shares). 
Yesterday was the last day with rights, and the company issued a 'synopsis' of how they work. 
Today the shares went ex-.
These rights are a bit weird. They are "partly paid-up" rights. There is a down payment, then a capital call.
It is worth understanding the details. 

The Reliance Industries [RIL] Rights Offering

India

Arvind Fashions Limited designs and produces apparels. The Company offers jeans, shirts, trousers, jackets, and suits. Arvind Fashions serves customers in India.

Arvind Fashions (ARVINDFA IN)

Arvind Fashions: Capital Restructuring to Aid in Navigating Uncertainties

We expect gross debt to reduce from Rs 903 crore in FY21 to Rs 500 crore by FY23E. The management's focus on prudent capital allocation, stringent...

ICICI Securities Limited

The Reliance Industries [RIL] Rights Offering

Following a couple of days of speculation, on 30 April, Reliance Industries (RIL IN) made an announcement of an intended 1:15 rights offering (i.e....

Travis Lundy