Walmart-owned Flipkart will buy 7.8% stake in Aditya Birla Fashion & Retail Limited for ₹1,500 crore. Aditya Birla Fashion & Retail runs brands like Pantaloons, Allen Solly, and Peter England. In a press release, Aditya Birla Fashion & Retail Limited said the equity capital will be raised at ₹205 per share.
According to a report in the Economic Times, Flipkart and Amazon had both held separate talks with Aditya Birla Fashion & Retail for a potential investment on Thursday but Flipkart managed to bag a stake in the fashion business.
Commenting on the deal, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said, the partnership is an emphatic endorsement of the growth potential of India.