Flipkart’s arm exits Aditya Birla Fashion; sells 6% stake for ₹583 crore via block deals

Flipkart Investments, an arm of e-commerce firm Flipkart, on Wednesday exited Aditya Birla Fashion and Retail by selling its entire 6 per cent stake in the company through block deals worth ₹583 crore.

Following the stake sale, shares of Aditya Birla Fashion & Retail (ABFRL) plunged nearly 11 per cent to trade at ₹76.94 apiece on NSE.

Flipkart Investments is a wholly-owned subsidiary of Flipkart Pvt Ltd (FPL). FPL belongs to the US-based Walmart Group.

As per the block deal, up to 7.31 crore equity shares of ABFRL were sold at a floor price of ₹79.50 per share. This represents a discount of about 7.6 per cent to ABFRL’s closing price of ₹86 on the National Stock Exchange (NSE) on Tuesday, as per the term sheet reviewed by PTI.

Goldman Sachs is the sole bookrunner for the deal.

The transaction comprises a sale of approximately 73.17 million shares (7.31 crore shares) amounting to around 6 per cent stake in Mumbai-based ABFRL.

At the offer floor price, the total deal size is estimated at ₹583 crore ($68.1 million) which is executed via one or more block deals on the NSE and BSE.

The offer is entirely secondary in nature, with no fresh equity being issued by the company.

In October 2020, ABFRL announced that it is raising ₹1,500 crore from Flipkart Group.

Last month, ABFRL said its consolidated net loss narrowed to ₹23.55 crore in the fourth quarter ended March 2025 from a net loss of ₹266.36 crore a year ago.

Revenue from operations rose to ₹1,719.48 during the quarter under review from ₹1,575.12 crore in the year-ago period.

Flipkart’s exit marks a complete divestment of its holdings in ABFRL, which houses brands such as Pantaloons, Van Heusen, and Louis Philippe.

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Published on June 4, 2025