Latest News | BIZ-STOCKS-ADITYA BIRLA Aditya Birla Fashion, Retail Shares Jump Nearly 8 Pc After Flipkart Deal
Get latest articles and stories on Latest News at LatestLY. Shares of Aditya Birla Fashion and Retail jumped nearly 8 per cent on Friday as Flipkart will buy a 7.8 per cent stake in the company.
New Delhi, Oct 23 (PTI) Shares of Aditya Birla Fashion and Retail jumped nearly 8 per cent on Friday as Flipkart will buy a 7.8 per cent stake in the company.
The stock gained 7.59 per cent to close at Rs 165.05 on the BSE. During the day, it zoomed 16.55 per cent to Rs 178.80.
On the NSE, it rose by 7.49 per cent to close at Rs 165.
In traded volume terms, 20.88 lakh shares were traded at the BSE and 5.92 crore units at the NSE during the day.
Also Read | Micromax ‘In’ Series India Launch Set for November 3, 2020.
Walmart-owned Flipkart will buy a 7.8 per cent stake in Aditya Birla Fashion and Retail for Rs 1,500 crore as it taps into the offline retail player's large bank of apparel outlets to bolster its presence in the high-margin fashion business.
Billionaire Kumar Mangalam Birla's retail business will issue preference shares to Flipkart, giving it a 7.8 per cent stake, Aditya Birla Fashion said in a stock exchange filing on Friday.
The transaction was at Rs 205 per share, a 33.6 per cent premium to Thursday's closing price of Rs 153.4.
Aditya Birla Fashion's current owners will hold a 55.1 per cent stake after the allotment.
While Flipkart will gain from Aditya Birla Fashion's range of international and Indian brands, the deal will help the company cut down debt, which stood at Rs 2,776 crore as of March 31, 2020.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)