The Competition Commission of India (CCI) has approved e-commerce marketplace Flipkart's proposed acquisition of 7.8 per cent equity stake in Aditya Birla Fashion and Retail.
Aditya Birla Fashion had approved the issuance of equity shares on a preferential basis to Flipkart for Rs 1,500 crore.
In addition to approval of shareholders by way of postal ballot received on November 22, 2020), the issue was subject to regulatory approvals and completion of customary closing conditions under the investment agreement.
"The CCI has accorded its approval to Flipkart for its proposed acquisition of 7.8 per cent equity stake in the company on a fully diluted basis vide its approval letter dated January 20," said Geetika Anand, Vice-President, Company Secretary and Compliance Officer at Aditya Birla Fashion.
The completion of preferential issue remains conditional upon the fulfilment of customary conditions," she said in regulatory filings at stock exchanges.
In August last year, the company successfully completed a rights issue of Rs 1,000 crore by offering 9.05 crore shares at Rs 110 per share. The issue evinced strong interest from promoters, large shareholders and retail investors.
Aditya Birla Fashion and Retail is India's largest pure-play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats.
The company has a network of more than 3,000 stores and presence across 22,000 multi-brand outlets with more than 5,400 points of sales in department stores across India.
At 11 am, Aditya Birla Fashion and Retail stock was trading 3.8 per cent higher at Rs 180.10 per unit on BSE Ltd.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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