Press "Enter" to skip to content

CCI approves Flipkart’s acquisition of 7.8% stake in Aditya Birla Fashion – Moneycontrol

Flipkart and Aditya Birla Fashion had announced the agreement in October last year.

According to the BSE filing by Flipkart, the company would be acquiring shares equivalent to 7.8 percent in the company at a price of Rs 205 each.

The Competition Commission of India (CCI) on January 20 approved a Rs 1,500 crore deal between Aditya Birla Fashion and Flipkart, which allows the latter to acquire a minority stake of 7.8 percent in the Birla Group-linked entity.

“Commission approves acquisition of a 7.8% minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Pvt Ltd,” the CCI, which is India’s nodal anti-trust regulator, said in a social media update.

Flipkart and Aditya Birla Fashion had announced the agreement in October last year. According to the BSE filing by Flipkart, the company would be acquiring shares equivalent to 7.8 percent in the company at a price of Rs 205 each.

On completion of this transaction, Aditya Birla Fashion would have successfully executed a capital raise of Rs 2,500 crore since April 1, 2020, despite the challenging macroeconomic conditions since the onset of COVID 19, the company had 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,” Kumar Mangalam Birla, Chairman of Aditya Birla Group, had said.

Flipkart CEO Kalyan Krishnamurthy had claimed that the deal would benefit the end-consumers, apart from both the entities.”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,” he had said.

Moneycontrol News