Flipkart to buy 7.8% stake of Aditya Birla Fashion for 1500 crores

Mumbai E-commerce giant Flipkart will buy 7.8 percent stake of Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share.

In the regulatory filing of the BSE, on Friday, Kumar Mangalam Birla-led company Aditya Birla Fashion has said that it will use the funds to strengthen its balance sheet and accelerate its growth momentum.

Aditya Birla Fashion said it plans to aggressively grow its existing businesses, where it holds a strong market leading position. At the same time, it expands presence in emerging high-growth categories such as innerwear, athlebiking, casualwear and ethnic wear, setting the company’s new engines of growth.

After the announcement of the deal, Kumar Mangalam Birla, Chairman, Aditya Birla Group, stated that this partnership is a strong support to India’s growth potential. He said that this also reflects our strong confidence in the future of the apparel industry in India, which is set to touch $ 100 billion in the next 5 years.

The company said that on completion of the deal, Aditya Birla Fashion has been successful in successfully executing capital of Rs 2500 crore despite challenging macroeconomic conditions of Kovid-19.

It is noteworthy that the deal will strengthen Flipkart’s range of brands offered on e-commerce platforms, including Myntra. Flipkart along with Myntra occupies a leading position in the online fashion market in India. It is known that this deal is going to intensify its prominence in the fashion segment.

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