Flipkart to buy 7.8% stake in Aditya Birla Fashion and Retail for Rs 1,500 crore

Walmart Inc-backed e-commerce major Flipkart on Friday said it will pick up 7.8% stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for an investment of Rs 1,500 crore as it looks to strengthen its presence in the fashion market.

The investment will be made by Flipkart Investments and the transaction is subject to regulatory approvals, Flipkart said in a statement.

ABFRL will issue preferential shares to Flipkart Group at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance, ABFRL said.

ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition. The company plans to scale-up its play in emerging high-growth fashion categories viz. innerwear/athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company.