Flipkart's Strategic Exit: A $588 Crore Turn in Fashion Retail
Flipkart divested its entire 6% stake in Aditya Birla Fashion and Retail for Rs 588 crore through an open market transaction. The shares sold at an average price of Rs 80.32 apiece. This exit marks a complete divestment, post a 2020 investment of Rs 1,500 crore into ABFRL.
- Country:
- India
In a major financial maneuver, Flipkart on Wednesday officially exited Aditya Birla Fashion and Retail (ABFRL) by selling its entire 6% stake for Rs 588 crore. This high-stakes transaction was conducted through Flipkart Investments Pvt Ltd on the National Stock Exchange (NSE).
The Bengaluru-based e-commerce giant disposed of 7,31,70,731 shares at an average selling price of Rs 80.32, marking the conclusion of a financial chapter that began with a Rs 1,500 crore investment in October 2020. The buyers behind this significant stake acquisition remain unidentified as of now.
Consequently, ABFRL shares took a hit, slumping 10.37% to close at Rs 77.08 on the NSE. Despite narrowing its net loss in the quarter ending March 2025, the brand's long-term performance and investor confidence remain pivotal for its market stability. Flipkart's exit underscores a strategic shift in its retail portfolio.
(With inputs from agencies.)
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