Walmart’s Flipkart Group on Friday approved an investment of Rs 1,500 crore in the Aditya Birla Fashion and Retail Ltd (ABFRL) for a 7.8% stake in the company on a fully diluted basis. 

ABFRL raised the equity capital on a preferential basis at the cost of Rs 205 per share, the fashion apparel company said in a statement. 

ABFRL promoter and promoting group companies will hold a 55.13% upon completion of the issuance. 

The firm said it will use this injection of capital to strengthen its balance sheet and “aggressively accelerate execution of its large-scale digital transformation strategy that will deepen the consumer connect of its brands”. 

Kumar Mangalam Birla, chairman of the Aditya Birla Group, said, “This partnership is an emphatic endorsement of the growth potential of India. It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”

“Rapid growth of technology infrastructure will further accelerate this process. Over the years, we have shaped ABFRL into a strong platform to capture future growth opportunities in India. This partnership is a critical component of that strategy,” he added. 

The Flipkart Group said it will strengthen the range of brands offered on its e-commerce platforms Flipkart and Myntra. 

Kalyan Krishnamurthy, CEO of Flipkart Group said, “Through this partnership with ABFRL, we will work towards making available a wide range of products for fashion-conscious consumers across different retail formats across the country.”