E-commerce Giant Flipkart To Acquire Stakes In Aditya Birla Fashion For Rs 1,500 Crore
Flipkart and Aditya Birla Fashion and Retail (ABFRL) have signed an agreement whereby Flipkart bought a 7.8 percent stake in ABFRL for Rs 1,500 Crore. The deal is the second biggest in the last two months in the domestic retail market after Reliance acquired the retail assets of the Future group for nearly Rs 25,000 crore. Abneesh Roy, executive vice-president, research (institutional equities), Edelweiss said that fashion and lifestyle retailers have been hit hard due to the pandemic, forcing them to either exit or forge tie-ups with stronger players, explaining about the deal. ABFRL has a network of 3,004 stores, with a presence across 23,700 multi-brand outlets has brands like Van Huesen, Louis Philippe, Allen Solly, and Peter England, apart from products under the Pantaloons retail format. The promoter and promoter group companies of Aditya Birla Fashion would hold about 55.13 percent stake upon the completion of the issue. Aditya Birla has already raised nearly Rs 1,000 crore in a rights issue in July.