Flipkart to Buy 7.8 Percent Stake in Aditya Birla's Fashion Unit for Rs. 1 324c56 500 Crores

Both Amazon and Flipkart were in the race to pick a stake in Aditya Birla Fashion and Retail. 4u4d1u

By Gadgets 360 Staff With Inputs From Reuters | Updated: 23 October 2020 12:31 IST

Flipkart to Buy 7.8 Percent Stake in Aditya Birla's Fashion Unit for Rs. 1,500 Crores

Earlier reports had said both Amazon and Flipkart were in the race to pick stake in Aditya Birla Fashion 5jl1s

Highlights

Shares of Aditya Birla Fashion and Retail surged to 6.5 percent
Indians are turning to online platforms for all purchases
Aditya Birla said it would use the money to strengthen its balance sheet

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Walmart's Flipkart will buy a 7.8 percent stake in Aditya Birla Fashion and Retail Ltd for Rs. 1,500 crores, the fashion retail company said, sending its shares up 6 percent on Friday.

The investment comes at a time when Flipkart are in a race to gain market share in India's fast-growing online market for food and groceries.

"Fashion retail in India is set for robust long-term growth due to strong fundamentals of a large and growing middle class... Rapid growth of technology infrastructure will further accelerate this process," Kumar Mangalam Birla said.

Flipkart Dussehra Specials Sale Begins: Top Deals on Mobiles

With the COVID-19 pandemic keeping most people indoors, Indians are turning to online platforms for all purchases from bread to phones to clothes.

Earlier reports had said both Amazon and Flipkart were in the race to pick a stake in Aditya Birla Fashion and Retail, that owns and operates the Pantaloons retail chain and owns rights to sell Forever 21 merchandise in India.

Aditya Birla said it would use the money to strengthen its balance sheet as it scales up its businesses.

Amazon, Others Rake in Rs. 35,400 Crores During Online Sales: Report

Shares of Aditya Birla Fashion and Retail surged as much as 6.5 percent to Rs. 163.45, their highest since March 30.

Flipkart Redmi 8A Dual are listed with price cuts.

© Thomson Reuters 2020

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