The transaction was underwritten by the group’s founder David Alliance, who is also its biggest shareholder.
The group, which owns Jacamo and JD Williams, said it will use the funds to remove unsecured debt and enable investment.
Following this equity raising, it is expected that substantial shareholders will represent approximately 40% of the enlarged share capital, while David and Joshua Alliance will hold 52% as part of the wider concert party.
Steve Johnson, the group’s chief executive, spoke about N Brown’s equity raising plans last month, when addressing investors after the release of the group’s interim results.
He said: “Today’s (5 November) separately announced proposed capital raise will give us the firepower to invest further in our digital capabilities and accelerate our growth strategy, whilst significantly strengthening the group’s balance sheet to provide us with ongoing flexibility and a strong platform from which to deliver attractive returns for all of our shareholders.
“Whilst we are mindful of an uncertain UK retail environment, we are confident we can continue to build on the unique strength of the group’s brands.”
He added: “We remain focused on creating a sustainable business delivering profitable growth over the long term.”