Leading well-diversified non-banking financial services company in India, Aditya Birla Fashion and Retail Limited (ABFL), in the Stock exchange filing said that its board has approved the issuance of equity shares on a preferential basis to Flipkart Investments Private Limited, a foreign portfolio investor, aggregating to Rs 1,500 Crore.  According to details on the preferential share-issue announced by the company, Flipkart Investments will be issued 7,31,70,732 fully paid-up equity shares at Rs 205 per share,  aggregating Rs1,500-crore. After the allotment, its percentage of share-holding will be 7.8 percent. The promoter group companies of Aditya Birla Fashion and Retail will hold about 55.13 percent upon completion of the issuance.

Aditya Birla Fashion said in a statement that the Investment Agreement provides for some rights such as pre-emption rights and right of first refusal which are for a limited period of between one to five years from the date of allotment of equity shares or if the equity shareholding of the Investor falls below a certain threshold.   The Company (ABFL) plans to use this capital to strengthen its balance sheet and speed up its growth trajectory. The company plans to effectively scale-up its existing businesses where it holds strong, market leading positions while increasing presence in emerging high-growth categories.

This development made a positive impact on ABFL stocks. During the noon session of trade, During the Noon session of trade, Aditya Birla Fashion and Retail’s share price was quoted higher by 14.20 percent or Rs.21.80 to Rs.175.30 per share on NSE.   The stock touched an intraday high and low of Rs.176 90 Rs 149.80 respectively on Friday.

Flipkart sells 110 products per second in this festive season

Flipkart giving great chance, buy your favourite smartphone for free

Flipkart giving great chance, buy your favourite smartphone for free