Flipkart Sells Stakes in Blackbuck and ABFRL — A Strategic Move or Market Shake-Up?
Walmart-backed Flipkart has sold its stakes in logistics technology firm Blackbuck and fashion retail giant Aditya Birla Fashion and Retail (ABFRL) through separate block deals this week, cashing out a combined total of more than Rs 1,250 crore.
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Exit from Blackbuck Marks End of a Decade-Long Investment
Flipkart’s subsidiary Quickroutes International divested its entire 9% stake in Zinka Logistics, the parent company of Blackbuck, for Rs 672 crore in a block deal executed on Tuesday. The stake sale involved offloading more than 1.59 crore shares, priced between Rs 420.06 and Rs 420.25 each on the NSE. This marks Flipkart’s exit from its decade-old investment in the Bengaluru-based logistics tech startup, which it initially backed in 2015.
Alongside Flipkart, other early investors like Peak XV Partners and Accel India also reduced their holdings. On the buyer side, institutional investors such as Abu Dhabi Investment Authority, MIT, ICICI Prudential Mutual Fund, SBI Mutual Fund, and Nomura India acquired shares amounting to a 4.73% stake in Blackbuck.
Since Blackbuck’s IPO in November 2024, Flipkart had already offloaded shares worth Rs 151 crore but still held a significant stake valued at Rs 416 crore before this block deal. Early investors including Accel and Tiger Global have seen returns of four- to five-fold on their investments following the company’s public listing.
Flipkart Sells Entire Stake in ABFRL for Rs 587.7 Crore
In a separate block deal, Flipkart Investments sold its entire 6% stake in ABFRL for Rs 587.7 crore on Wednesday morning. The transaction involved 73.17 million shares traded at Rs 80.32 per share, slightly below the previous closing price, reflecting a 6.6% discount.
Shares of ABFRL, which owns leading apparel brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, and Reebok, had dropped sharply prior to the deal, closing at Rs 76.10 on the BSE, down 11.49%. The company also operates casualwear lines such as American Eagle and Forever 21.
Flipkart initially acquired a 7.8% stake in ABFRL in October 2020 for Rs 1,500 crore, aiming to strengthen its offline presence and bolster its Myntra fashion platform.
Market Context
These exits come amid a broader recovery in public markets after a sharp decline earlier this year. The resurgence has triggered multiple secondary deals involving promoters, private equity firms, and strategic investors trimming their holdings to capitalize on improved valuations.
Experts suggest that such block deals reflect a strategic rebalancing by large investors like Flipkart to focus on core areas while monetizing gains from earlier investments in diverse sectors such as logistics and fashion retail.
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