Flipkart to acquire 7.8% stake in Aditya Birla Fashion for Rs 1,500 crore

The promoter and promoter group companies of Aditya Birla Fashion will hold about 55.13 per cent stake upon completion of the issuance

Aditya Birla Fashion and Retail (ABFRL) and e-commerce major Flipkart on Friday said they had entered into an agreement that would see the latter infuse Rs 1,500 crore into the company for a 7.8 per cent stake. The retailer would issue 73 million preference shares to Flipkart at Rs 205 per share. ABFRL shares surged 7.6 per cent to close at 165.05 on Friday.

This is the second big deal in two months in the domestic retail market, after Reliance acquired the retail assets of the Future group for nearly Rs 25,000 crore. The Flipkart-ABFRL transaction will further consolidate the market,