Walmart’s Flipkart will acquire a 7.8 percent stake in Aditya Birla Fashion and Retail Ltd for Rs. 1,500 crores, the fashion retailer said, sending its shares up 6 percent on Friday.
The investment comes at a time when Amazon, Mukesh Ambani-led billionaire Reliance, and Flipkart are battling for share in India’s fast-growing online grocery and grocery market.
“The fashion industry in India is poised for robust long-term growth because of the strong fundamentals of a large and growing middle class … The rapid growth of technology infrastructure will further accelerate this process,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group.
With the COVID-19 pandemic keeping most people indoors, Indians are turning to online platforms for anything from bread to phones to clothing.
Previous reports said that both Amazon and Flipkart were in the running for a stake in Aditya Birla Fashion and Retail, which owns and operates the retail chain Pantaloons and has the right to sell Forever 21 merchandise in India.
Aditya Birla said she would use the money to strengthen her balance sheet while growing her businesses.
Aditya Birla Fashion and Retail’s shares rose 6.5 percent to Rs. 163.45, their highest value since March 30th.
Flipkart started its Dussehra Specials sale yesterday, October 22nd. The sale is slated to run through October 28th and offers great deals on smartphones with free EMI options, exchange discounts and full protection for mobile devices. Phones like Realme C3, iPhone SE (2020), iPhone 11 Pro and Redmi 8A Dual are listed with price drops.
© Thomson Reuters 2020
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