Flipkart invests Rs 1,500 crore in Aditya Birla Fashion
Flipkart Investments will pick up 7.8 percent stake in Aditya Birla Fashion and Retail Limited (ABFRL) with an investment of Rs 1,500 crore. The equity capital will be raised at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance.
ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition with renewed vigour, said a statement. The company plans to scale-up its play in emerging high-growth fashion categories including innerwear, athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company. Furthermore, ABFRL will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities, positioning it amongst the most comprehensive omni-channel fashion players in the country.
Through this partnership, the Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra, deepening its relationship with ABFRL, and enhancing the range of premium international and Indian brands on offer.