E-commerce giant Flipkart has completely divested its 6% stake in Aditya Birla Fashion and Retail Limited (ABFRL). This transaction, conducted through the open market, concluded at an average price of ₹80.32 per share, totaling approximately ₹587.71 crore.
Business: E-commerce company Flipkart has sold its entire 6% stake in Aditya Birla Fashion and Retail Limited (ABFRL). This deal, executed via the open market, averaged ₹80.32 per share, resulting in a total value of ₹587.71 crore. With this sale, Flipkart is now completely separated from ABFRL. This transaction's impact was clearly visible on the company's stock prices.
Flipkart Sells Entire Stake
Major e-commerce player Flipkart has completely sold its 6% stake in Aditya Birla Fashion and Retail Limited (ABFRL). This sale was conducted through Flipkart Investment Private Limited, a subsidiary of Flipkart. According to National Stock Exchange (NSE) bulk deal data, Flipkart sold a total of 73,170,731 shares, representing approximately 6% of ABFRL's total shares. Following this transaction, Flipkart no longer holds any stake in ABFRL.
Total Deal Value and Share Price
Flipkart sold its shares at an average price of ₹80.32 per share in this deal. Overall, the transaction amounted to ₹587.71 crore. However, the stock exchange did not disclose the buyer's identity. It's noteworthy that in October 2020, the Flipkart Group invested ₹1500 crore in ABFRL. At the time, it was considered a strategic partnership aimed at strengthening the fashion and retail business on a digital platform.
Impact on the Stock Market
The impact of Flipkart's large-scale divestment was evident on the stock market. On Wednesday, ABFRL shares on the NSE closed down 10.37% at ₹77.08 per share. On the BSE, the share price saw a 10.69% drop, closing at ₹76.79. Due to selling pressure, the company also hit its 52-week low on this day, reaching ₹76.10. Previously, ABFRL's 52-week high was ₹121.74.
Company Profile
Aditya Birla Fashion and Retail Limited (ABFRL) is one of India's leading fashion retail companies. Its portfolio includes several well-known brands such as Pantaloons, Van Heusen, Louis Philippe, and Peter England. The company reaches customers through thousands of outlets and a multi-channel distribution network across the country.
