"Given the complementary strengths of ABFRL and Flipkart
Group, this partnership has the potential to dramatically accelerate the growth of the apparel industry in India and reshape apparel commerce. This deal also provides a tremendous opportunity to build scale of existing brands and expand its brand portfolio into emerging consumer segments," said Ashish Dikshit, managing director, ABFRL.
ABFRL plans to use this capital to strengthen its balance sheet and accelerate its growth trajectory. The company plans to aggressively scale-up its existing businesses where it holds strong, market leading positions while increasing presence in emerging high-growth categories, the management said in a statement.
Furthermore, ABFRL will aggressively accelerate execution of its large-scale digital transformation strategy that will deepen the consumer connect of its brands, expand reach of its diverse brand portfolio, build strong omni-channel functionalities and augment its backend capabilities; positioning it amongst the most comprehensive Omni-channel fashion players in the country, it said.
On completion of this transaction, ABFRL 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.
That apart, the company has also, in furtherance of the existing B2B arrangements with Flipkart India Private Limited, entered into a commercial agreement in relation to the sale and distribution of various brands of the company.
The stock of the company hit a high of Rs 179 piece on the BSE on Friday, surging 16.68 per cent in the intra-day deals.
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