The board members of Aditya Birla Fashion and Retail has approved a sale of 7.8% of its stack to raise INR 1500 crore. Aditya Birla Fashion and Retail Ltd (ABFRL) board on Friday has decided to issue 7.8% stake on a preferential basis to Walmart-owned Flipkart Group to raise INR1500 CRORE. INR 205 will be the value per share to raise the equity.
Flipkart sells 110 products per second in this festive season
ABFRL said in a regulatory filing, that Flipkart Group will own 7.8% equity stake in ABFRL on a fully diluted basis with this infusion. Upon completing the infusion process, the promoter and promoter group companies of ABFRL will hold about 55.13% stake. Kumar Mangalam Birla, the Chairman of Aditya Birla Group has said this partnership backs the growth potential of India firmly. The apparel industry in India expected to touch $100 billion in the next 5 years. The partnership holds strong verdict in the apparel industry. Rapid growth of technology infrastructure will further accelerate the long-term growth. ABFRL has been grown into a strong platform to capture future growth opportunities in India. The capital raised by the partnership will be utilised to strengthen its balance sheet and accelerate its growth trajectory.
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The company plans to scale-up the market with new categories such as innerwear, athleisure, casual wear and ethnic wear, projected new engines of the company growth. ABFRL is to be involved in aggressive execution of large-scale digital transformation strategy, and all other possible ways to position itself amongst the most comprehensive omnichannel fashion players in the country. The partnership with Flipkart will gives opportunity to build the scale of existing brands and expand its brand portfolio among the customer segment.
