E-commerce giant Flipkart has fully exited its investment in Aditya Birla Fashion & Retail Ltd (ABFRL) by selling its 6% stake for ₹582 crore through open market transactions. The sale marks the end of Flipkart’s strategic investment in ABFRL, which it made in 2020 to strengthen its foothold in the fashion retail segment.
According to stock exchange data, around 5.97 crore shares were offloaded at an average price of ₹97.48 per share. The buyers in this transaction have not yet been disclosed publicly.
Flipkart had originally invested ₹1,500 crore in ABFRL at a valuation of ₹205 per share. The recent sale price indicates a significant loss compared to the initial investment, suggesting a strategic portfolio reshuffle by the Walmart-owned e-commerce company.
Industry experts believe the move could be part of Flipkart’s focus on consolidating its own fashion brands like Myntra, Shopsy, and Flipkart Fashion, instead of relying on external partnerships.
ABFRL, which owns popular brands such as Pantaloons, Allen Solly, Louis Philippe, Van Heusen, and Peter England, has been actively raising funds and restructuring its business to focus on premium and ethnic wear.
Summary Table
| Particulars | Details |
|---|---|
| Company Selling Stake | Flipkart Pvt Ltd |
| Company Sold | Aditya Birla Fashion & Retail Ltd (ABFRL) |
| Stake Sold | 6% |
| Sale Value | ₹582 crore |
| Shares Sold | 5.97 crore shares |
| Average Sale Price | ₹97.48 per share |
| Original Investment (2020) | ₹1,500 crore |
| Original Price per Share | ₹205 |
| Reason for Exit | Strategic portfolio realignment |
| ABFRL Brands | Allen Solly, Pantaloons, Van Heusen, Louis Philippe, Peter England |
💬 What This Means
Flipkart’s exit signals a shift in its strategy to build proprietary fashion ecosystems rather than hold long-term stakes in retail giants. Meanwhile, ABFRL continues to strengthen its market position by expanding into new-age fashion and luxury segments, despite market volatility.
