Flipkart to invest Rs 1,500 crore for 7.8 per cent stake in Aditya Birla Fashion and Retail

Walmart-owned Flipkart is investing Rs 1,500 crore to pick up a 7.8 per cent stake in Aditya Birla Fashion and Retail Ltd (ABFRL). The transaction will enable ABFRL to sell its various brands on the latter’s platform.

The investment by Flipkart will be through a preferential issue. ABFRL will issue 7,31,70,732 shares at Rs 205 apiece.

In a regulatory filing with the bourses, the Birla group firm said this investment agreement “provides for pre-emption rights and the right of first refusal, which are for a limited period of between 1-5 years from the date of allotment of equity shares or if the equity shareholding of the investor falls below a certain threshold’’.