Mumbai, Oct 23 (IANS): Shares of Aditya Birla Fashion and Retail surged over 14 per cent on Friday afternoon after the company announced that Flipkart Investments Pvt Ltd will invest Rs 1,500 crore to pick up a stake of 7.8 per cent in the former.

Around 1.10 pm, shares of Aditya Birla Fashion were trading at Rs 175.70 on the BSE, higher by Rs 22.30 or 14.54 per cent from its previous close.

The equity capital will be raised at Rs 205 per share. The promoter and promoter group companies of ABFRL will hold about 55.13 per cent upon completion of the issuance.

ABFRL will use this capital to strengthen its balance sheet and propel its growth ambition with renewed vigour, said a statement.

The company plans to scale up its play in emerging high-growth fashion categories, including innerwear, athleisure, casual and ethnic wear, establishing these as the new engines of growth for the company.

Furthermore, ABFRL will accelerate the execution of its large-scale digital transformation strategy that will deepen its consumer connect and augment its backend capabilities, positioning it amongst the most comprehensive omni-channel fashion players in the country.