Aditya Birla Fashion, Retail shares jump nearly 8 pc after Flipkart deal

In traded volume terms, 20.88 lakh shares were traded at the BSE and 5.92 crore units at the NSE during the day. Walmart-owned Flipkart will buy a 7.8 per cent stake in Aditya Birla Fashion and Retail for Rs 1,500 crore as it taps into the offline retail player's large bank of apparel outlets to bolster its presence in the high-margin fashion business.

Shares of Aditya Birla Fashion and Retail jumped nearly 8 per cent on Friday as Flipkart will buy a 7.8 per cent stake in the company. The stock gained 7.59 per cent to close at Rs 165.05 on the BSE. During the day, it zoomed 16.55 per cent to Rs 178.80.

On the NSE, it rose by 7.49 per cent to close at Rs 165. In traded volume terms, 20.88 lakh shares were traded at the BSE and 5.92 crore units at the NSE during the day.

Walmart-owned Flipkart will buy a 7.8 per cent stake in Aditya Birla Fashion and Retail for Rs 1,500 crore as it taps into the offline retail player's large bank of apparel outlets to bolster its presence in the high-margin fashion business. Billionaire Kumar Mangalam Birla's retail business will issue preference shares to Flipkart, giving it a 7.8 per cent stake, Aditya Birla Fashion said in a stock exchange filing on Friday.

The transaction was at Rs 205 per share, a 33.6 per cent premium to Thursday's closing price of Rs 153.4. Aditya Birla Fashion's current owners will hold a 55.1 per cent stake after the allotment.

While Flipkart will gain from Aditya Birla Fashion's range of international and Indian brands, the deal will help the company cut down debt, which stood at Rs 2,776 crore as of March 31, 2020..