<p>Walmart Inc-backed e-commerce major Flipkart on Friday said it will pick up 7.8% stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for an investment of Rs 1,500 crore as it looks to strengthen its presence in the fashion market.</p>.<p>The investment will be made by Flipkart Investments and the transaction is subject to regulatory approvals, Flipkart said in a statement.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/technology/flipkart-big-billion-days-sale-top-deals-on-iphone-11-pro-galaxy-f41-and-more-902634.html" target="_blank">Flipkart Big Billion Days sale: Top deals on iPhone 11 Pro, Galaxy F41 and more</a></strong></p>.<p>ABFRL will issue preferential shares to Flipkart Group at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance, ABFRL said.</p>.<p>ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition. The company plans to scale-up its play in emerging high-growth fashion categories viz. innerwear/athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company.</p>.<p>"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," Kumar Mangalam Birla, Chairman, Aditya Birla Group said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/walmarts-flipkart-eyes-overseas-listing-as-early-as-2021-report-888477.html" target="_blank">Walmart's Flipkart eyes overseas listing as early as 2021</a></strong></p>.<p>Through this partnership, the Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra, deepening its relationship with ABFRL, and enhancing the range of premium international and Indian brands on offer.</p>.<p>"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," Kalyan Krishnamurthy, CEO of Flipkart Group said.</p>.<p>On completion of this transaction, ABFRL would have successfully executed a capital raise of Rs 2,500 core since April 1 2020, despite the challenging macroeconomic conditions since the onset of Covid-19. This is a testament to the Company’s bouquet of strong brands, well established operating model, respectable parentage, credible leadership and attractive business potential, ABFRL statement added.</p>
<p>Walmart Inc-backed e-commerce major Flipkart on Friday said it will pick up 7.8% stake in Aditya Birla Fashion and Retail Ltd (ABFRL) for an investment of Rs 1,500 crore as it looks to strengthen its presence in the fashion market.</p>.<p>The investment will be made by Flipkart Investments and the transaction is subject to regulatory approvals, Flipkart said in a statement.</p>.<p><strong>Read | <a href="https://www.deccanherald.com/business/technology/flipkart-big-billion-days-sale-top-deals-on-iphone-11-pro-galaxy-f41-and-more-902634.html" target="_blank">Flipkart Big Billion Days sale: Top deals on iPhone 11 Pro, Galaxy F41 and more</a></strong></p>.<p>ABFRL will issue preferential shares to Flipkart Group at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance, ABFRL said.</p>.<p>ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition. The company plans to scale-up its play in emerging high-growth fashion categories viz. innerwear/athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company.</p>.<p>"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," Kumar Mangalam Birla, Chairman, Aditya Birla Group said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/walmarts-flipkart-eyes-overseas-listing-as-early-as-2021-report-888477.html" target="_blank">Walmart's Flipkart eyes overseas listing as early as 2021</a></strong></p>.<p>Through this partnership, the Flipkart Group will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra, deepening its relationship with ABFRL, and enhancing the range of premium international and Indian brands on offer.</p>.<p>"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," Kalyan Krishnamurthy, CEO of Flipkart Group said.</p>.<p>On completion of this transaction, ABFRL would have successfully executed a capital raise of Rs 2,500 core since April 1 2020, despite the challenging macroeconomic conditions since the onset of Covid-19. This is a testament to the Company’s bouquet of strong brands, well established operating model, respectable parentage, credible leadership and attractive business potential, ABFRL statement added.</p>
