Flipkart to buy 7.8% stake in Aditya Birla Fashion for Rs 1500 crore
Flipkart to buy 7.8% stake in Aditya Birla Fashion for Rs 1500 crore
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 E-commerce company Flipkart to buy  7.8% stake in Aditya Birla Fashion & Retail (ABFRL) Ltd for Rs 1,500 crore by preferential share infusion at Rs 205 per equity share.  In a BSE statement, Aditya Birla said that the Flipkart is buying 7.8% stake in the company for Rs 1500 crore at Rs 205 per share. The board of Aditya Birla Fashion & Retail Ltd (ABFRL) approved the issuance of equity shares on a preferential basis to Flipkart Investments Pvt Ltd aggregating upto Rs 1,500 crore. 

Kumar Mangalam Birla, Chairman Aditya Birla Group said, “This partnership is an emphatic endorsement of the growth potential of India." The Birla further said that the deal also reflects the strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.

After the deal, Flipkart will own 7.8% equity stake in AB Fashion on a fully diluted basis while the promoter and promoter group companies of ABFRL will hold 55.13%.  Let us tell you that ABFRL is one of the largest Indian pure-play fashion and lifestyle company with a network of 3,004 stores. Aditya Birla Fashion said it will use this money to strengthen its balance sheet and accelerate its growth trajectory.

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