Flipkart's Strategic Exit: Impact on Aditya Birla Fashion

In a strategic move, Flipkart Investments sold its entire 6% stake in Aditya Birla Fashion and Retail (ABFRL) for a substantial Rs 583 crore. The block deals, managed by Goldman Sachs, saw shares of ABFRL plummet almost 11% to Rs 76.94 apiece on the National Stock Exchange.

Flipkart Investments, a wholly-owned subsidiary of the Walmart Group's Flipkart Pvt Ltd, executed the sale through block deals on the NSE and BSE. The total deal involved approximately 73.17 million shares, sold at a floor price of Rs 79.50 each, marking a 7.6% discount to the previous closing price.

This transaction marks a complete divestment for Flipkart in ABFRL, a key player in the Indian fashion sector, which encompasses brands like Pantaloons, Van Heusen, and Louis Philippe. The exit aligns with Flipkart's evolving investment strategy within the dynamic e-commerce landscape.

(With inputs from agencies.)