CCI approves Flipkart's plan to acquire a minority stake in Aditya Birla Fashion

By

Isabelle Crossley

Published
Jan 21, 2021

On Wednesday, the Competition Commission of India announced that it has approved Flipkart Investments Private Ltd’s bid to acquire a 7.8% minority stake in Aditya Birla Fashion.

 
Following the infusion of an investment of Rs 1,500 crore ($225.5 million), Flipkart Group will own a 7.8% equity stake in Aditya Birla Fashion and Retail Limited on a fully diluted basis, the Press Trust of India reported. Aditya Birla Fashion had itself approved the fund raising plan in October last year. 
 
“Commission approves acquisition of a 7.8% minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd," said the CCI in a tweet.

Upon completion of the issuance, Aditya Birla Fashion’s promoter and promoter group companies will hold around 55.13% of the business, according to a regulatory filing made by the business.
 
Aditya Birla Fashion both manufactures and retails clothing, footwear, and accessories for a number of brands including Louis Philippe, Pantaloons, Van Heusen, and Madura F&L, among others. The business runs e-commerce stores, multi-brand outlets, and department stores, as well as single-brand stores. 
 
Flipkart Investments Private Ltd is a wholly-owned subsidiary of Flipkart Private Limited, which is owned by U.S.-based business, Walmart.