Flipkart Acquires 7.8 percent of Aditya Birla Fashion at Rs. 1500 Cr
Flipkart will own 7.8% equity stake in Aditya Birla Fashion and Retail Limited on a fully diluted basis.
Aditya Birla Fashion and Retail Limited on 23rd October approved the issuance of equity shares on a preferential basis to Flipkart Investments Private Limited. Flipkart bought the same at Rs. 1500 crore.
The issue price of the preferential allotment is set at Rs 205 per share.
"This partnership is an emphatic endorsement of t
he growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100bn in the next 5 years. Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class, favourable demographics, rising disposable incomes and aspiration for brands. Rapid growth of technology infrastructure will further accelerate this process. Over the years, we have shaped Aditya Birla Fashion and Retail Limited into a strong platform to capture future growth opportunities in India. This partnership is a critical component of that strategy," said Kumar Mangalam Birla, chairman of Aditya Birla Group.
“Through this transaction with Aditya Birla Fashion and Retail Limited, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India," said Kalyan Krishnamurthy, CEO of Flipkart Investments Private Limited.
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