Aditya Birla Fashion Block Deal: Flipkart Eyes Exit For At Least Rs 582 Crore

Walmart-owned Flipkart is planning to exit Aditya Birla Fashion & Retail Ltd. through open market transactions on Wednesday for at least Rs 582 crore.

Flipkart Investments Pvt. has offered to offload its entire 6% stake containing over 7.3 crore shares via block deals. The floor price has been set at Rs 79.5 per share, according to the term sheet reported by Bloomberg News. The base price represents a 7.6% discount to the last closing.

Multinational investment bank Goldman Sachs is the bookrunner for the block deal.

Singapore-based Flipkart Investments is listed as a category two foreign portfolio investor in ABFRL.

Aditya Birla Fashion has lined up capital expenditure of Rs 500 crore this financial year. A big focus for the company will be revamping its loss-making entities – TCNS Clothing, Tasva and TMRW – and making them profitable by next fiscal.

The expansion comes at a time when consumers are cutting budgets across discretionary products.

The company reported a net loss of Rs 161 crore in the fourth quarter of the current financial year.

Shares of Aditya Birla Fashion and Retail ended 1.8% lower at Rs 86.06 on the BSE, compared to a 0.8% decline in the benchmark Sensex. The stock has fallen 3% in the last 12 months but has risen 25% so far this year