Aditya Birla Fashion to sell 7.8% stake to Flipkart Group for Rs 1500 cr

Aditya Birla Fashion and Retail Ltd (ABFRL) on Friday said its board has approved plans to raise Rs 1500 crore by issuing 7.8% stake on a preferential basis to Walmart-owned Flipkart Group. “Aditya Birla Fashion and Retail has today approved the raising of Rs 1500 crore by way of preferential issue to Flipkart Group. The equity capital will be raised at Rs 205 per share.

“With this infusion, Flipkart Group will own 7.8% equity stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance,” ABFRL said in a regulatory filing.

Aditya Birla Group Chairman Kumar Mangalam Birla said this partnership is an emphatic endorsement of the growth potential of India.