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.
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