ABFRL shares surge after Flipkart block deal

Flipkart Investments Private Limited, a subsidiary of the Walmart-owned e-commerce giant, has significantly reduced its stake in Aditya Birla Fashion and Retail Ltd (ABFRL) through a major block deal, part of its portfolio rationalization strategy.

The transaction, which involved over 7 crore shares—representing a 5.93 percent equity stake—took place on Monday, October 6. Following news of the block deal, shares of Aditya Birla Lifestyle Brands Ltd surged by as much as 11 percent to a day's high of Rs 151 per share on the NSE.

At about 9:40 am, shares of the company were trading at Rs 148, an increase of 8.3 percent from the last close on the NSE. The stock has also seen a 7 percent increase over the last six months.

Flipkart’s initial investment in ABFRL dates back to 2020, established primarily to enhance the omni-channel capabilities of fashion brands. This divestment now marks Flipkart’s exit from a significant shareholding position, with its remaining stake falling to below 3 percent.

The move comes as part of Flipkart's broader strategy to realign its investments within the Indian retail sector. ABFRL operates several major fashion brands in India, including Pantaloons, Van Heusen, Allen Solly, and Louis Philippe.