Aditya Birla Fashion-Flipkart deal gets CCI nod; share price jumps 4 per cent
The shares of Aditya Birla Fashion & Retail Limited (ABFRL) had climbed up by almost 4 per cent during the early trading session on January 21, 2021, after Competition Commission of India (CCI) approved Flipkart’s acquisition of a 7.8 per cent stake in the company.
The deal worth Rs 1,500 crore between Aditya Birla Fashion and Flipkart was approved by India’s nodal anti-trust regulator at a price of Rs 205 per share.
On the completion of the above transaction, Aditya Birla Fashion would have raised capital of Rs 2,500 crore since April 01, 2020. This comes on the back of challenging macroeconomic conditions since the onset of COVID-19.
Speaking on the deal with Flipkart, Kumar Mangalam Birla, Chairman of Aditya Birla Group, had stated that the partnership was an emphatic endorsement of the growth potential of India and reflected the company’s strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.
By 2 pm on Thursday, the stock had pared some of its gains and was trading at Rs 176.35 per share, up by 1.67 per cent or 2.90 per share. The 52-week high is recorded at Rs 281.31 while its 52-week low is Rs 95.69 on BSE.