Aditya Birla Fashion & Retail share price jumped over 4 percent intraday on January 21 after the Competition Commission of India (CCI) approved Flipkart's acquisition of a 7.8 percent stake.
CCI on January 20 approved a Rs 1,500-crore deal between Aditya Birla Fashion and Flipkart, which allows the e-commerce company to acquire a 7.8 percent in the Birla Group entity.
"The commission approves acquisition of a 7.8 percent minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Pvt Ltd," the CCI, which is India’s nodal anti-trust regulator, said on Twitter.
Flipkart and Aditya Birla Fashion had announced the agreement in October last year. According to the BSE filing by Flipkart, the company would be acquiring shares equivalent to 7.8 percent in the company at a price of Rs 205 each.
On completion of this transaction, Aditya Birla Fashion would have successfully executed a capital raise of Rs 2,500 crore since April 1, 2020, despite the challenging macroeconomic conditions since the onset of COVID 19, the company had said.
The stock was trading at Rs 180.90, up Rs 7.45, or 4.30 percent at 09:48 hours. It has touched an intraday high of Rs 199.95 and an intraday low of Rs 180.10.
The scrip witnessed a spurt in volume by more than 1.16 times and was trading with volumes of 198,582 shares compared to its five-day average of 116,539 shares, an increase of 70.40 percent.
"This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years," Kumar Mangalam Birla, Chairman of Aditya Birla Group, had said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
