SBI MF, Goldman Sachs, Others Buy As Flipkart Exits Aditya Birla Lifestyle Via Rs 998-Crore Block Deal

E-retail platform Flipkart has pared its entire stake in Aditya Birla Lifestyle Brands Ltd. (ABLBL) through a block deal worth Rs 998 crore, as per NSE data on Monday.

Marquee investors mopped up shares of the retailer, with the likes of Societe Generale ODI, Morgan Stanley Asia Singapore Pte - ODI, and Goldman Sachs Bank Europe Se - ODI participating in the block deal.

Domestic mutual funds were not too far behind, with major players such as Aditya Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund and UTI Mutual Fund buying a stake in ABLBL.

SBI Life Insurance Co purchased 1.7 crore shares for Rs 236 crore, while ICICI Prudential and Nippon bought stake worth Rs 260 crore and Rs 241 crore each.

The transaction saw Flipkart offload approximately 7.3 crore shares at an average price of Rs 136.45, representing a discount of up to 6.55% on ABLBL's last closing price of Rs 146.01 on the National Stock Exchange, as of Oct. 6.

The exit is part of the company's realignment strategy as the Walmart-owned e-commerce giant looks to calibrate its business in India.

It must be noted that Aditya Birla Lifestyle Brands demerged from Aditya Birla Fashion earlier this year. The demerged entity houses the Madura fashion and the lifestyle business, which includes the likes of Van Heusen and Louis Philippe.

ABLBL, in fact, is one of India's largest branded apparel players, with a portfolio that also includes Allen Solly, in addition to Van Heusen and Louis Philippe.

Flipkart is carrying out the sale as a clean-up trade, meaning there will be no lock-up period on its remaining holdings.

Flipkart's exit from the company comes at a time when Aditya Birla's fashion arm is looking to expand further into the luxury segment, which has historically given higher margins.

With the GST rate cuts now live, the company will be hoping to capitalise on the increased spending to boost sales heading into the second half of the ongoing fiscal.