Flipkart buys 1500 Crore stake of Aditya Birla Fashion, share price up over 6%
Aditya Birla Fashion & Retail (ABFRL) share price added over 6 percent intraday on October 23 as the company announced that Flipkart is buying stake
Flipkart is buying 7.8% stake in Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share, latter said in a BSE statement.
The Aditya Birla Fashion board approved issuance of equity shares on a preferential basis to Flipkart Investments Private Limited, a foreign portfolio investor, aggregating to Rs 1500 crore, it added.
The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance.
“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 $100bn in the next 5 years," said Kumar Mangalam Birla, Chairman Aditya Birla Group.