Bengaluru: E-commerce giant Flipkart will invest Rs 1,500 crore in Aditya Birla Fashion and Retail Ltd (ABFRL) to acquire 7.8% stake in the fashion apparel company.
“The rquity capital will be raised at Rs 205 per share. With this infusion, Flipkart Group will own 7.8% stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance,” ABFRL said in a statement on Friday.
The company further said that it will aggressively accelerate execution of its large-scale digital transformation strategy that will deepen the consumer connect of its brands, Times of India reported.
Speaking on the development, Flipkart Group CEO, Kalyan Krishnamurthy said, “Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country.
“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,” he added.
On his part, Aditya Birla Group Chairman, Kumar Mangalam Birla said, “This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”