[Update] Flipkart Exits Aditya Birla Lifestyle Brands Via INR 998 Cr Block Deal

Update | October 6, 22:10 PM

Flipkart’s investment vehicle, Flipkart Investments Private Limited, has sold 7.32 Cr shares in Aditya Birla Lifestyle Brands Ltd (ABLB) via a block deal today for INR 998.4 Cr. The block deal valued each share of the company at INR 136.45, a discount of 7% from the company’s closing price of INR 146.65. 

The shares were lapped up by investors like Goldman Sachs, Societe Generale, Morgan Stanley, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Ghisallo Master Fund and Amansa Holdings Private Limited.

Original | October 6, 12:21 PM

Flipkart Investments, the investment vehicle of ecommerce giant Flipkart, is reportedly diluting its entire 6% stake in Aditya Birla Lifestyle Brands Ltd (ABLB) through a block deal worth INR 950 Cr (around $114 Mn)

As per a CNBC Awaaz report, Flipkart is set to sell 7.3 Cr shares at a base price of INR 130 per share. 

Notably, Flipkart Investments infused INR 1,500 Cr in Aditya Birla Fashion and Retail Ltd (ABFRL) to acquire a 7.8% stake in 2020. 

ABLBL emerged after the vertical demerger of western wear brands within the Madura Fashion and Lifestyle’s business from ABFRL into a newly incorporated entity. ABLBL has lifestyle brands like Louis Philippe, Van Heusen, Allen Solly, Peter England and Simon Carter in its portfolio. Additionally, it counts American Eagle, the innerwear business under Van Heusen, and the sportswear business of Reebok also in its portfolio.

Meanwhile, ABFRL is raising INR 437 Cr in its maiden external funding round to fuel its digital house of brands venture TMRW. During the launch of TMRW in 2022, ABFRL said it would build a portfolio of 30 fashion and lifestyle brands by 2025 either through acquisitions or incubating the brands. As of now, TMRW’s portfolio includes D2C startups Bewakoof, The Indian Garage Co., Wrogn, Urbano, Nobero, among others. 

For Flipkart, the stake sale comes at a time when the ecommerce giant is gearing up for its IPO. As part of this, the company is in the process of moving its headquarters from Singapore to India and expects the reverse flip to be completed in about a couple of months.

On the financial front, its B2C arm Flipkart Internet crossed the INR 20,000 Cr revenue mark in FY25. Its operating revenue rose 14.4% to INR 20,493 Cr in FY25 from INR 17,907 Cr in FY24. Meanwhile, it managed to trim its loss by 37% to INR 1,494 Cr during the year under review from INR 2,359 Cr in FY24.