Aditya Birla Fashion share price up 3% after Flipkart eyes stake in the company for Rs 1,500 cr



a group of people sitting at a desk in a room: Aditya Birla Fashion share price up 3% after Flipkart eyes stake in the company for Rs 1,500 cr


© Sandip Das
Aditya Birla Fashion share price up 3% after Flipkart eyes stake in the company for Rs 1,500 cr

Aditya Birla Fashion share price gained 3 percent at open on October 26 after the company said e-commerce giant Flipkart is planning to buy 7.8 percent stake in the company.

Flipkart is buying 7.8 percent stake in Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share, latter said in a BSE statement.

Kumar Mangalam Birla, Chairman Aditya Birla Group said, “This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”

On completion of this transaction, Aditya Birla Fashion would have successfully executed a capital raise of Rs 2500 crore since April 1, 2020, despite the challenging macroeconomic conditions since the onset of COVID 19, the company said.

The stock was trading at Rs 169.55, up Rs 4.50, or 2.73 percent at 09:19 hours. It has touched an intraday high of Rs 172.50 and an intraday low of Rs 166.40.

Aditya Birla Fashion said it will use this money to strengthen its balance sheet and accelerate its growth trajectory. The company plans to aggressively scale-up its existing businesses where it holds strong, market-leading positions while increasing presence in emerging high-growth categories such as innerwear, athleisure, casual wear and ethnic wear, establishing these as the new engines of growth for the company, it said.

“Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country,” said Kalyan Krishnamurthy, CEO, Flipkart Group.

According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum: price above short, medium and long term moving averages. It has zero promoter pledge.

Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

Source Article

Read more

Sensex, Nifty end higher; Aditya Birla Fashion surges on Flipkart deal

BENGALURU (Reuters) – Indian shares ended higher on Friday, driven by gains in auto stocks, while a 15 billion rupees investment from Walmart Inc’s Flipkart pushed Aditya Birla Fashion and Retail up as much as 17%.

FILE PHOTO: People walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, February 28, 2020. REUTERS/Hemanshi Kamani/File photo

The Nifty rose 0.28% to 11,930.35, while the Sensex gained 0.31% at 40,685.50. For the week, both the indexes gained more than 1% each.

Aditya Birla Fashion and Retail gave up some early gains to close 7.5% higher at its best level since March 26 after Flipkart said it will buy a 7.8% stake in the company.

The Nifty Auto Index rose nearly 3%, with carmaker Maruti Suzuki up 4.3%, leading gains as well as acting as the top boost to the blue-chip Nifty 50 index.

“The market is precariously perched, fervently praying that the fiscal stimulus bill in the United States will be passed and that a torrent of liquidity will flow into global equity markets,” said Ajay Bodke, chief executive officer and chief portfolio manager (PMS) at Prabhudas Lilladher in Mumbai.

Global stocks remained within a tight range on Friday, less than two weeks before the U.S. presidential election, with traders looking for a breakthrough in stimulus talks in Washington.

“For the Nifty to go beyond 12,000, the earnings momentum needs to become far stronger.”

Investors were awaiting earnings reports from Nifty components Nestle India Ltd and Tech Mahindra Ltd.

Corporate results this week, dominated by consumer goods firms, have been a mixed bag, although most expected a rise in demand going forward.

Credit card company SBI Cards and Payment Services Ltd closed down 5.2%, having tumbled as much as 10% to a ten-week low, after reporting a lower profit and a sharp drop in asset quality in the September quarter.

Consumer electricals maker Crompton Greaves Consumer Electricals jumped 14.8% after a surge in second-quarter profit.

Reporting by Chris Thomas and NR Sethuraman in Bengaluru; Editing by Shailesh Kuber

Source Article

Read more

Flipkart To Invest INR 1,500 Cr In Aditya Birla Fashion And Retail

The tie-up targets to build omnichannel capabilities and enhance the consumer fashion experience

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.


2 min read

Opinions expressed by Entrepreneur contributors are their own.


You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.

The Aditya Birla Fashion and Retail Limited (ABFRL) on Friday announced a strategic partnership with Flipkart Group through an investment of INR 1,500 crore, Flipkart Investments will own an equity 7.8 per cent stake in ABFRL, as the companies partner to leverage synergies in the fashion segment.

ABFRL plans to scale-up its play in emerging high-growth fashion establishing this as the new engine of growth for the company. Furthermore, it will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities; positioning it amongst the most comprehensive fashion giants in the country. 

“We look forward to this partnership with Flipkart Group, and our collective journey to delight customers of a young and aspirational India. Given the complementary strengths of ABFRL and Flipkart Group, this partnership has the potential to dramatically accelerate the growth of the apparel industry in India and reshape apparel commerce,” said ABFRL managing director Ashish Dikshit, commenting on the deal.

“This deal also provides a tremendous opportunity to build the scale of existing brands and expand its brand portfolio into emerging consumer segments,” Dikshit added.

The recent launch of Flipkart Wholesale is a testament to our commitment to accelerate the growth of kiranas and MSMEs (micro, small and medium enterprises) in efforts to democratize e-commerce in India, drive access and affordability, delight customers, create lakhs of jobs in the ecosystem and empower generations of entrepreneurs and MSMEs in India.

“At the Flipkart Group, we are focused on building new partnerships that will help us meet the demands of the discerning Indian consumer who seek quality and value. Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India,” said Flipkart Group chief executive officer Kalyan Krishnamurthy, speaking on this development.

Source Article

Read more

India’s Flipkart buys over $200 million stake in Aditya Birla Fashion and Retail

Flipkart is acquiring a 7.8% stake in Aditya Birla Fashion as the Walmart-owned Indian e-commerce firm makes further push into the fashion category in one of the world’s largest retail markets.

The e-commerce group will pay $203.8 million for its stake in Aditya Birla Fashion and Retail, a conglomerate that operates over 3,000 stores including the Pantaloons brand. As part of the “landmark partnership,” Flipkart will also sell and distribute various Aditya Birla Fashion and Retail’s brands products.

“This partnership is an emphatic endorsement of the growth potential of India,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group, which operates the fashion retail firm in a filing to the stock exchange. “It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”

Kalyan Krishnamurthy, CEO of Flipkart Group, said the two companies will work toward “making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India.”

In July, Flipkart also invested $35 million in $35 million in Arvind Fashions, one of the decades-old Indian firm’s subsidiaries.

More to follow…

Source Article

Read more

Aditya Birla Fashion Board meeting on 23 October to consider proposal on fund raising; shares up by 6 per cent

Aditya Birla Fashion Stock Alert: The Board of Directors of Aditya Birla Fashion and Retail Limited will be meeting on 23 October 2020 (Friday) to consider a proposal for raising funds through issue of equity shares/ convertible bonds / debentures / any other securities, through permissible modes, the company informed in its filing to the stock exchanges. 

“Please be informed that a meeting of the Board of Directors of the Company will be held on Friday, October 23, 2020, to inter alia consider of proposal for raising funds through issue of equity shares/ convertible bonds / debentures / any other securities, through permissible modes including but not limited to a qualified institutions placement, preferential allotment, rights issue, further public offer, etc., subject to such approvals, as may be required under the applicable laws,” the company filing said. 

At 12:30 pm, the stocks of Aditya Birla Fashion were trading at Rs 153. 20 on the NSE, up by almost 6 per cent from the previous close on Friday.

With a retail space of 8.1 million sq ft as on March 31, 2020, ABFRL is a billion-dollar pure-play fashion company. ABFRL emerged after the consolidation of the branded apparel businesses of Aditya Birla Group comprising ABNL’s Madura Fashion division and ABNL’s subsidiaries — Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya Birla Fashion and Retail Ltd.

ABFRL has 3,031 brand stores across the country with a presence across 25,000 multi-brand outlets and 6,000+ point of sales in department stores across India, the company’s website says.

 

See Zee Business Live TV Streaming Below:

It is also a multi-brand retailer of international brands including Simon Carter and select mono-brands such as American Eagle, Ralph Lauren, Hackett London, Ted Baker and Fred Perry.

'; var ci = 1; var pl = $(".star137549 div.field-name-body div.field-items div.field-item").children('p').length; var adcount = 0; if (pl 3) { $(".star137549 div.field-name-body div.field-items div.field-item").children('p').each(function (i, n) { ci = parseInt(i) + 1; t = this; var htm = $(this).html(); d = $("

"); if ((i + 1) % 3 == 0 && (i + 1) 2 && $(this).html().length 20 && ci < pl && adcount < 3) { if (adcount == 2) { $('

').insertAfter(t); } adcount++; } else if (adcount = 3) { return false; } }); } $(fb_script).appendTo(fmain); $(fdiv).appendTo(fmain); var rightside = $('div#main-rhs137549 div.main-contents:first').clone(); var outpg = $('body').children('.outpage'); $(".sidebar137549").theiaStickySidebar(); if ($.autopager) { var use_ajax = true;

function loadshare(curl) { history.pushState('', '', curl); if (window.OBR) { window.OBR.extern.researchWidget(); } if (_up == false) { var cu_url = curl; ga('set', 'page', curl); ga('send', 'pageview'); } } if (use_ajax == false) { var view_selector = 'div#maincontent'; var content_selector = view_selector; var items_selector = content_selector …

Read more