CCI approves e-commerce giant Flipkart's acquisition of 7.8 percent stake in Aditya Birla Fashion
Flipkart and Aditya Birla Fashion had announced the agreement in October 2020 in which Aditya Birla Fashion would be issuing a 7.8 percent stake to Flipkart on a preferential basis.
Flipkart. Image: Reuters
The Competition Commission of India (CCI) on 20 January approved a Rs 1,500 crore deal between Aditya Birla Fashion and Flipkart, which allows the latter, Flipkart Investments Private Limited (FIPL), to acquire a minority stake of 7.8 percent in the Birla Group-linked entity. "Commission approves acquisition of a 7.8 percent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Pvt Ltd," the CCI, which is India’s nodal anti-trust regulator, said in a social media update.
Commission approves acquisition of a 7.8% minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd pic.twitter.com/Jjxi9rwXEM
— CCI (@CCI_India) January 20, 2021
In October last year, Aditya Birla Fashion's board had approved plans to raise Rs 1,500 crore by issuing a 7.8 per cent stake on a preferential basis to Walmart-owned Flipkart Group. After the dilution of the 7.8 per cent stake, the promoter and promoter group companies of ABFRL will hold around 55.13 per cent stake.
Aditya Birla Fashion and Retail Ltd (ABFRL) is engaged in the business of manufacturing and retailing branded apparels, footwear and accessories, through its retail stores, multi-brand outlets, departmental stores, online retail platforms and e-commerce marketplaces, across India.
FIPL is a wholly-owned subsidiary of Flipkart Private Limited (FPL), and FPL belongs to Walmart Group.
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