Flipkart acquires 7.8% of the shares of Aditya Birla Fashion

The board of directors of Aditya Birla Fashion & Retail Limited today approved the issue of preferred shares to Flipkart Investments Private Limited for a total of £ 1,500. The company has also entered into a commercial agreement related to the sale and distribution of various company brands.

Aditya Birla Fashion and Retail Limited said that the share capital will increase to £ 205 per share. Flipkart will own a 7.8% stake in Aditya Birla Fashion and Retail Limited at full dilution.

The promoter and promoter group companies of Aditya Birla Fashion and Retail Limited will own approximately 55.13% at the end of the offering.

<< The investment contract provides, in particular, certain rights, such as the subscription right and the right of first refusal for a limited period of 1 to 5 years from the date of allocation of the shares or if the investor is below of a certain threshold, “said Aditya Birla Fashion and Retail. Limited.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said: “This partnership is a strong confirmation of the growth potential of India. This also reflects our strong belief in the future of the Indian garment industry, which is projected to reach $ 100 billion in the next 5 years. Fashion retail in India is expected to see strong long-term growth as the fundamentals of a large and growing middle class, favorable demographics, increased disposable income, and brand aspirations are strong. The rapid growth of technology infrastructure will further accelerate this process. Over the years, we have made Aditya Birla Fashion and Retail Limited a strong platform to capitalize on future growth opportunities in India. This partnership is an essential element of this strategy. “”

Aditya Birla Fashion and Retail Limited plans to use this capital to strengthen the balance sheet and accelerate growth.

“The company plans to aggressively expand its existing business, where it has strong market leadership, while increasing its presence in emerging high-growth categories such as home wear, athletics, casual wear and ethnic wear, making them the new engines. growth for him, “said Aditya Birla Fashion and Retail Limited.

In addition, Aditya Birla Fashion and Retail Limited will aggressively accelerate the implementation of its comprehensive digital transformation strategy that will deepen customer loyalty to its brands and broaden the reach of its diverse portfolio of brands. Build robust omnichannel capabilities and extend backend capabilities. This makes the company one of the most complete omnichannel fashion providers in the country ”, added the company.

Kalyan Krishnamurthy, CEO of Flipkart Group, said: “Through this transaction with Aditya Birla Fashion and Retail Limited, we will endeavor to bring a wide range of products in a variety of retail formats to fashion-conscious consumers. Across the country. We look forward to working with ABFRL and its extensive and well-established fashion and retail infrastructure to capitalize on the promising opportunities of the Indian garment industry. “

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