Aditya Birla Fashion and Retail, which had closed yesterday at Rs.88.40, opened a tad lower but soon jumped up to hit a new 52-week high at Rs.102. Its 20% UC of the day is at Rs.106.05 and is currently among the top three gainers on the BSE.
The stock has surged after it announced that Flipkart is buying 7.8% stake in the company for Rs.1500 crore. This works out to a price of Rs.205/share.
The promoter and promoter group companies of Aditya Birla Fashion and Retail Limited will hold about 55.13% upon completion of the issuance
The company said that it will use this money 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 such as innerwear, athleisure, casualwear and ethnic wear, establishing these as the new engines of growth for the company.