Flipkart-backed companies have divested a 6 percent stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for an estimated ₹583 crore through open market transactions, marking a significant exit from the fashion retail giant.
The shares were sold by two Flipkart-affiliated entities: Fascinating Street Ltd. and Gambit Investments Pte Ltd. The transactions were executed via block deals on the stock exchanges.
According to data available from the National Stock Exchange (NSE), Fascinating Street Ltd. offloaded 3,84,33,889 shares, while Gambit Investments Pte Ltd. sold 1,84,18,668 shares of ABFRL. In total, 5,68,52,557 equity shares were sold, representing a 6% stake in Aditya Birla Fashion and Retail Ltd.
The shares were sold at an average price of ₹102.50 per share, bringing the total transaction value to ₹582.73 crore.
While the buyers in the block deals were not immediately disclosed, such transactions typically involve institutional investors. This move by Flipkart’s investment arms indicates a strategic portfolio realignment.
Flipkart had initially acquired a 7.8% stake in ABFRL in October 2020 for ₹1,500 crore, as part of a broader strategy to strengthen its position in the fashion e-commerce segment and leverage ABFRL’s strong brand portfolio. This partial exit suggests a re-evaluation of that investment.
Aditya Birla Fashion and Retail Ltd. boasts a robust portfolio of leading fashion brands, including Louis Philippe, Van Heusen, Allen Solly, and Peter England, as well as Pantaloons and various international brand partnerships.
Key Highlights:
- Flipkart-backed companies sold a 6% stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for approximately ₹583 crore.
- The stake was divested by Fascinating Street Ltd. and Gambit Investments Pte Ltd. through block deals on the NSE.
- A total of 5,68,52,557 equity shares were sold at an average price of ₹102.50 per share.
- Flipkart had originally acquired a 7.8% stake in ABFRL in October 2020 for ₹1,500 crore.