Aditya Birla Fashion & Retail‘s share price rose more than 4% on January 21 after the Competition Commission of India (ICC) approved the acquisition of a 7.8% stake by Flipkart.
CCI has reached a 1,500 rupee deal between Aditya Birla Fashion and Flipkart that allows the e-commerce company to acquire 7.8% of the Birla group.
“The Commission authorizes the acquisition of a 7.8% minority stake in Aditya Birla Fashion and Retail Ltd by Flipkart Investments Pvt Ltd,” the Chamber of Commerce, India’s antitrust regulator, said on Twitter.
Flipkart and Aditya Birla Fashion announced the deal last October. According to Flipkart’s ESB filing, the company would acquire 7.8% of the company’s shares at a price of Rs 205 each.
At the end of this transaction, Aditya Birla Fashion would have successfully carried out a capital increase of Rs 2,500 crore from April 1, 2020 despite difficult macroeconomic conditions since the start of COVID 19.
The stock was trading at Rs 180.90, up Rs 7.45 or 4.30% at 9:48 am. It reached an intraday high of Rs 199.95 and an intraday low of Rs 180.10.
The price rose more than 1.16 times in volume and traded at 198,582 shares by volume, compared to its five-day average of 116,539 shares, an increase of 70.40%.
“This partnership is a strong affirmation of India’s growth potential. It also reflects our firm belief in the future of the Indian garment industry, which will reach $ 100 billion in the next 5 years,” said Kumar Mangalam Birla, President of the Aditya Birla Group.