Flipkart Mulls to Sell Entire 6% Stake in Aditya Birla Fashion for ₹600 Crore

As per Bloomberg news reports, Flipkart Investments Pvt. Ltd, a Singapore-based arm of Walmart-owned Flipkart, is set to sell its entire 6% stake in Aditya Birla Fashion & Retail Ltd (ABFRL) through a block deal. The sale, to be executed on Wednesday, is valued at approximately ₹582-600 crore.

Floor Price at a Discount

The floor price for the transaction has been set at ₹79.5 per share, representing a 7.6% discount to the stock’s last closing price of ₹86.06 on the Bombay Stock Exchange (BSE). Over 7.3 crore shares are being offered in this deal. Investment bank Goldman Sachs is managing the transaction.

Q4 Financial Performance

For the quarter ending March 2025, ABFRL reported a net loss of ₹23.55 crore, compared to a loss of ₹266.36 crore in the same quarter the previous year. Revenue from operations stood at ₹1,719.48 crore, up from ₹1,575.12 crore year-on-year. Total expenses during the quarter were ₹1,959.53 crore. The company stated that financial results are not directly comparable due to the recent demerger of the Madura Fashion & Lifestyle business.

Segment Revenue

For FY25, ABFRL posted a net loss of ₹455.82 crore on operational revenue of ₹7,354.73 crore. Revenue from Pantaloons was ₹884.60 crore, while the ethnic and other segments contributed ₹846.99 crore.

Read more: When Can Investors Expect Flipkart IPO!

Capex Plans

ABFRL has planned capital expenditure of ₹500 crore for the current financial year. The company aims to improve the performance of its loss-making businesses, TCNS Clothing, Tasva, and TMRW.

Share Price Performance

As of 10:16 AM on June 4, 2025, ABFRL share price was trading at ₹76.88, a 10.60% decrease, with a 72.46% decline over the past 6 months and a 67.60% drop over the past year.

Conclusion

Flipkart’s complete exit from ABFRL comes at a time when the fashion company is undergoing operational restructuring and investment reallocation.

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