Flipkart to acquire 7.8% stake in Aditya Birla Fashion
Published On: Friday, October 23, 2020 | By: Team KnowMyStock
Aditya Birla Fashion and Retail entered into an agreement with Flipkart today(23rd Oct.2020) for a partnership that will see Flipkart infusing Rs 1,500 crore for a 7.8 percent stake in Aditya Birla Fashion. The agreement would involve the sale and distribution of various apparel brands, Aditya Birla Fashion said, along with providing pre-emption rights and right of first refusal to Flipkart for 1-5 years. Aditya Birla Fashion would issue 3.1 million preference shares to Flipkart at Rs 205 per share, it said in a BSE notification. Aneesh Roy, executive vice-president, research, Edelweiss, said the capital raise would further bolster Aditya Birla Fashion's balance sheet and accelerate growth. The partnership would also enable the company to strengthen its omnichannel presence. The promoter and promoter group companies of Aditya Birla Fashion would hold about 55.13 percent stake upon completion of the issuance.
Kumar Mangalam Birla, chairman of the Aditya Birla group said: “This partnership is an emphatic endorsement of the 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. Over the years, we have shaped Aditya Birla Fashion into a strong platform to capture future growth opportunities in India. This partnership is a critical component of that strategy.”
Tags: Flipkart Aditya Birla Fashion
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