Aditya Birla Fashion to sell 7.8 pc stake to Flipkart Group

October 23, 2020 11:52

Aditya Birla Fashion and Retail Ltd on Friday said its board has approved plans to raise Rs 1,500 crore by issuing 7.8 per cent stake on a preferential basis to Walmart-owned Flipkart Group.

"Aditya Birla Fashion and Retail has today approved the raising of Rs 1,500 crore by way of preferential issue to Flipkart Group. The equity capital will be raised at Rs 205 per share.

"With this infusion, Flipkart Group will own 7.8 per cent equity stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance," ABFRL said in a regulatory filing.

Aditya Birla Group Chairman Kumar Mangalam Birla 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 USD 100 billion 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 ABFRL into a strong platform to capture future growth opportunities in India. This partnership is a critical component of that strategy," he said. -- PTI

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