Flipkart may exit Aditya Birla Fashion through ₹600 crore block deal

Walmart-owned e-commerce firm to offload remaining 6 per cent stake as part of strategic shift; Goldman Sachs managing the transaction

Walmart-owned Flipkart is preparing to divest its entire 6 per cent holding in Aditya Birla Fashion & Retail Ltd (ABFRL) through a block deal valued at around ₹600 crore, according to people familiar with the matter.

 

The transaction, if completed, would mark a full exit for the e-commerce major from the Indian fashion retailer.

 

ABFRL operates brands such as Pantaloons, Van Heusen, and Allen Solly.

 

The stake is held through Flipkart Investments Private Ltd, and Goldman Sachs is managing the proposed block trade, according to the sources.

 

“It was a pure business to business (B2B) play for Flipkart and this deal is part of the natural evolution of the business,” said a person familiar with Flipkart’s thinking.

 

The floor price for the block deal has been reportedly set at ₹80 per share, reflecting a discount of around 7 per cent to ABFRL’s current market price. 

 

In 2021, the Competition Commission of India (CCI) had approved the acquisition of 7.8 per cent minority stake in ABFRL by Flipkart Investments.

 

In 2020, Flipkart Group and ABFRL formed a new strategic partnership aimed at enhancing the consumer fashion experience.

 

Through an investment of ₹1,500 crore, Flipkart Investments had said it would acquire about 7.8 per cent stake in ABFRL.

 

The companies partnered to leverage synergies in the fashion segment.

 

Through this partnership, the Flipkart group strengthened the range of brands offered on its e-commerce platforms Flipkart and Myntra.

 

The aim was to enhance the range of premium international and Indian brands on offer.

 

Flipkart’s technology prowess enhanced ABFRL’s omni-channel capabilities. This enriched customer experience, while continuing to provide access to premium loyalty programmes and affordability constructs.