Flipkart acquires 7.8% stake in Aditya Birla Fashion for $204 Million
New Delhi, Oct 24, 2020: Walmart owned Flipkart acquires a 7.8 percent stake in Aditya Birla Fashion and Retail for $203.8 million (Rs 1,500 crore) as it taps into the offline retail player's large bank of apparel outlets to bolster its presence in the high-margin fashion business.
Billionaire Kumar Mangalam Birla's retail business will issue preference shares to Flipkart, giving it a 7.8 percent stake, Aditya Birla Fashion said in a stock exchange filing on Friday.
Aditya Birla Fashion's current owners will hold a 55.1 percent stake after the allotment.
While Flipkart will gain from Aditya Birla Fashion's range of international and Indian brands, the deal will help the company cut down debt, which stood at Rs 2,776 crore as of March 31, 2020.
The investment will give it a bigg...