Aditya Birla Lifestyle Brands Shares Surge After Flipkart's Rs 950 Crore Exit

Shares of Aditya Birla Lifestyle Brands Ltd. surged at market open on Monday and is trading with gains of almost 10% on the back of Flipkart's complete exit in the company.

The stock reached an intraday high of Rs 150, which accounted for gains of more than 10%. The stock opened on Monday at Rs 144, compared to Friday's closing price of Rs 136.45.

Aditya Birla Lifestyle Brands' upsurge comes on the back of a block deal that saw Flipkart sell its entire 6% stake in the company. The transaction involved 7.3 crore shares at a base price of Rs 130, which represents a discount of up to 4.73% on ABLBL's last closing price.

The total value of Flipkart's stake sale was around Rs 950 crore, marking one of the biggest exits from a private investor from a domestic retail company.

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

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

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

Shares of ABLBL are currently trading at a relative strength index of 43, which suggests neutral market sentiment.

Four out of the ten analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 161.44, implying an upside of 11% from current levels.

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