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.
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