CCI approves Flipkart's acquisition of 7.8pc stake in Aditya Birla Fashion
Competition Commission of India (CCI) on Wednesday said it has approved the acquisition of 7.8 percent minority stake in Aditya Birla Fashion by Flipkart Investments Private Ltd (FIPL).
Aditya Birla Fashion, in October last year, had approved plans to raise Rs 1,500 crore by issuing a 7.8 percent stake on a preferential basis to Walmart-owned Flipkart Group.
"Commission approves acquisition of a 7.8 percent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Private Ltd," the regulator said in a tweet.
With this infusion, Flipkart Group will own a 7.8 percent equity stake in ABFRL on a fully diluted basis. The promoter and promoter group companies of ABFRL will hold about 55.13 percent upon completion of the issuance, ABFRL said in a regulatory filing earlier.
Aditya Birla Fashion and Retail Ltd (ABFRL) is engaged in the business of manufacturing and retailing branded apparels, footwear, and accessories, through its retail stores, multi-brand outlets, departmental stores, online retail platforms, and ecommerce marketplaces across India.
FIPL is a wholly-owned subsidiary of Flipkart Private Limited (FPL), and FPL belongs to Walmart Group.
Walmart Group undertakes various business activities in India, such as wholesale trading of products, providing ecommerce marketplace services, and digital payments services.
Separately, the fair trade regulator cleared Ares SSG Capital Management (Singapore) acquisition in Altico Capital India.
"Commission approves acquisition of Altico Capital India by Ares SSG Capital Management (Singapore)," it said in a tweet.
Last week, Flipkart's accelerator programme — Flipkart Leap — had announced its first cohort of eight selected startups.
The eight finalists were selected from 920 applications across five categories, who will undergo a 16-week mentorship programme, as well as receive an equity-free grant of $25,000.
The selected startups are ANS Commerce, Entropik Tech, Fashinza, Gully Network, Piggy, Tagbox Solutions, Unbox Robotics, and Wolkus Technology (Fasal).
(Disclaimer: Additional background information has been added to this PTI copy for context)