Walmart Inc.'s Flipkart Group will invest more than $200 million in India's Aditya Birla Fashion & Retail Ltd. as part of its efforts to ramp up retail operations in the world's second most populous country.

Aditya Birla said Friday it will raise 15 billion rupees ($203.6 million) from Flipkart, an India-based e-commerce startup controlled by Walmart, in a preferential offering of shares. Flipkart will have a 7.8% stake in Aditya Birla.

Mumbai-based Aditya Birla offered the shares at INR205 each, a nearly 34% premium to Thursday's closing price. Shares on Friday closed 7.6% higher at INR165.05.

Aditya Birla said it will use the proceeds to strengthen its balance sheet and scale up existing businesses.

"This partnership is an emphatic endorsement of the growth potential of India," said Kumar Mangalam Birla, Aditya Birla's chairman. "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 five years.


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(END) Dow Jones Newswires

October 23, 2020 07:13 ET (11:13 GMT)

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