Business News: On Friday, Aditya Birla Fashion and Retail Ltd (ABFRL) said its board has accepted plans to raise out Rs.1,500 crore by issuing 7.8 per cent stake on a superior basis to Walmart-owned Flipkart Group.
Today, Aditya Birla Fashion and Retail has approved the raising of Rs.1,500 crore by way of superior issue to Flipkart Group. The equity capital will be raised at the Rs.205 per share.
“With this beverage, Flipkart Group will own 7.8 per cent of its equity stake in ABFRL on the fully diluted basis. The promoter and the group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance,” ABFRL said in a regulatory filing. Aditya Birla Group Chairman Kumar Mangalam Birla said the partnership is emphatic endorsement of the growth potential of India.
He said “rapid growth of technology infrastructure will further accelerate this process. Over the years, we have shaped ABFRL into a strong platform to capture future growth opportunities in India.
“This partnership is a critical component of that strategy.” Added, ABFRL said it plans to use this capital to strengthen its balance sheet and accelerate its growth trajectory.
At the Flipkart Group, we are focused on building new partnerships that will help us meet the demands of the discerning Indian consumer who seek quality and value.
Kalyan Krishnamurthy, CEO of Flipkart Group, said that, “We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India”.