Shares of Aditya Birla Fashion & Retail Ltd. fell nearly 10% on Wednesday as Walmart-owned Flipkart is planning to exit by selling shares for at least Rs 582 crore via open market transactions.
According to a term sheet accessed by NDTV Profit, the shares will be sold on Wednesday via a block deal by Flipkart Investments Pvt. Flipkart is looking to offload 7.3 crore shares, or a 6% stake in Aditya Birla Fashion.
The stake will be offloaded at a floor price of Rs 79.5 per share, which means the sale will be at a discount of 7.6% to Rs 86 apiece—the closing on Tuesday.
Multinational investment bank Goldman Sachs is the bookrunner for the block deal.
Notably, Flipkart Investments held 7.32 crore shares, or around 6% stake in Aditya Birla Fashion, as of the quarter ended March 31, 2025, indicating that the firm will exit the company.
Aditya Birla Fashion Shares Decline
Shares of Aditya Birla Fashion fell as much as 9.59% to Rs 77.75 apiece, the lowest level since April 2. It pared losses to trade 9.30% lower at Rs 78 apiece, as of 9:43 a.m. This compares to a 0.03% advance in the NSE Nifty 50.
It has fallen 71.10% in the last 12 months and 72.59% year-to-date. Total traded volume so far in the day stood at 153 times its 30-day average. The relative strength index was at 27.7. Above 70 is overbought or below 30 is oversold.
Out of 21 analysts tracking the company, six maintain a 'buy' rating, eight recommend a 'hold', and seven suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside/upside of 43.7%.
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