BENGALURU: Walmart Inc’s Flipkart will invest Rs 1,500 crore ($203.78 million) in India’s Aditya Birla Fashion and Retail Ltd (ABFRL) for a 7.8% stake, the fashion apparel company said on Friday.
“The equity capital will be raised at Rs 205 per share. With this infusion, Flipkart Group will own 7.8% equity stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance,” it added.
Kumar Mangalam Birla, chairman Aditya Birla Group 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 $100bn in the next 5 years. Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class, favorable demographics, rising disposable incomes and aspiration for brands.”
ABFRL further said that it will aggressively accelerate execution of its large-scale digital transformation strategy that will deepen the consumer connect of its brands.
Kalyan Krishnamurthy, CEO of Flipkart Group said, “At the Flipkart Group, we are focused on building new partnerships that will help us meet the demands of the discerning Indian consumer who seek quality and value. Through this transaction with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country.”
The transaction is subject to regulatory and other customary approvals.
Source From : Times Of India