Share price of Aditya Birla Fashion and Retail rose over 15% today after the firm said online shopping major Flipkart is buying 7.8% stake. Aditya Birla Fashion share rose 15.28% intra day to Rs 176.85 against previous close of Rs 153.40 on BSE.
Total 13.82 lakh shares changed hands amounting to turnover of Rs 22.91 crore on BSE. Market cap of the firm rose to Rs 13,443.97 crore on BSE.
The stock has gained 19.5% in last three days. The stock touched an intraday low of Rs 150, down 2.22% on BSE. Aditya Birla Fashion stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has lost 14.34% in one year and fallen 24.11% since the beginning of this year. In a month, the stock has risen 33.5% and 28% in a week.
Flipkart is buying 7.8% stake in Aditya Birla Fashion for Rs 1500 crore at Rs 205 per share.
Board of Aditya Birla Fashion cleared issue of equity shares on a preferential basis to Flipkart Investments Private Limited, a foreign portfolio investor, aggregating to Rs 1500 crore, the Aditya Birla Group firm said. The promoter and promoter group companies of ABFRL will hold about 55.13% upon completion of the issuance.
"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 $100bn in the next 5 years," said Kumar Mangalam Birla, Chairman Aditya Birla Group.
ABFRL plans to use this capital to strengthen its balance sheet and accelerate its growth trajectory.