Flipkart to buy 7.8% stake in Aditya Birla Fashion

Flipkart to buy 7.8% stake in Aditya Birla Fashion

With this acquisition, Walmart-owned Flipkart Group will strengthen the wide array of brands offered on its e-commerce platforms Myntra and Flipkart, deepening its association with Aditya Birla Fashion and Retail (ABFRL)

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The Flipkart-ABFRL pact would be 2020's second big deal in the offline consumer space so farThe Flipkart-ABFRL pact would be 2020's second big deal in the offline consumer space so far
BusinessToday.In
  • Oct 23, 2020,
  • Updated Oct 23, 2020 12:13 PM IST

Flipkart is going to acquire a 7.8% stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 1,500 crore on a fully diluted basis, the latter said in a regulatory filing adding that the proceeds will be used to "strengthen the company's balance sheet and accelerate its growth".

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ABFRL approved the raising of Rs 1,500 crore through preferential allotment of shares at Rs 205 (per share), 33.63% higher than Thursday's closing price of Rs 153.40.

The Flipkart-ABFRL pact would be 2020's second big deal in the offline consumer space so far. In August this year, Reliance Industries Ltd.'s (RIL) unit Retail Ventures acquired the retail and wholesale business as well as the logistics and warehousing business from Kishore Biyani-led Future Group as going concerns for a gross amount of Rs 24,713 crore.

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Flipkart is going to acquire a 7.8% stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 1,500 crore on a fully diluted basis, the latter said in a regulatory filing adding that the proceeds will be used to "strengthen the company's balance sheet and accelerate its growth".

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ABFRL approved the raising of Rs 1,500 crore through preferential allotment of shares at Rs 205 (per share), 33.63% higher than Thursday's closing price of Rs 153.40.

The Flipkart-ABFRL pact would be 2020's second big deal in the offline consumer space so far. In August this year, Reliance Industries Ltd.'s (RIL) unit Retail Ventures acquired the retail and wholesale business as well as the logistics and warehousing business from Kishore Biyani-led Future Group as going concerns for a gross amount of Rs 24,713 crore.

Also Read:

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