Aditya Birla Fashion and Retail (ABFRL) rose 3.83% to Rs 180.10 after the Competition Commission of India (CCI) approved the Flipkart-Aditya Birla Fashion deal.
Competition Commission of India (CCI) on Wednesday (20 January 2021) said it had approved the acquisition of a 7.8% minority stake in Aditya Birla Fashion and Retail by Flipkart Investments.
The deal was announced in October 2020. The board of ABFRL had approved raising Rs 1500 crore through preferential issue of equity shares to Flipkart Group at Rs 205 per share.
With this infusion, Flipkart Group would 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.
Competition Commission of India on Wednesday said it has approved the acquisition of 7.8 per cent minority stake in Aditya Birla Fashion by Flipkart Investments Private Ltd (FIPL).
Aditya Birla Fashion had in October last year approved plans to raise Rs 1,500 crore by issuing a 7.8 per cent stake on a preferential basis to Walmart-owned Flipkart Group. Commission approves acquisition of a 7.8 per cent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd, the regulator said in a tweet. With this infusion, Flipkart Group will own a 7.8 per cent equity stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance, ABFRL said in a regulatory filing earlier.
The Competition Commission of India (CCI) on Wednesday approved the acquisition of a 7.8 per cent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd. The competition watchdog made the announcement in the evening on Twitter. Last October, Flipkart Group and Aditya Birla Fashion and Retail Limited (ABFRL) formed a new strategic partnership aimed at enhancing the consumer fashion experience. Through an investment of Rs 1,500 crore, Flipkart Investments said it will acquire about 7.8 per cent stake in ABFRL. The companies have partnered to leverage synergies in the fashion segment. Through this partnership, Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra. This would deepen its relationship with ABFRL, and enhance the range of premium international and Indian brands on offer. Flipkart’s technology prowess will enhance ABFRL’s omni-channel capabilities. This would enrich customer expe