Aditya Birla Fashion acquires 16% stake in Virat Kohli-backed Wrogn for ₹125 crore

The Aditya Birla group fashion retail arm added that the minority stake purchase of 16% comes with an option for majority stake acquisition. Reports suggest that the deal was made for a consideration of ₹125 crore. The company said that the acquisition is likely to be completed in 30 to 90 days.

As per the release, ABFRL aims to expand its portfolio of digital-first brands through the acquisition. The majority stake option includes the manufacturing and distribution of fashion apparel, footwear, and accessories under the brand ‘Wrogn’.

USPL, incorporated in 2012, is a manufacturer and distributor of fashion apparel, footwear and accessories under the brand ‘Wrogn’. The fashion and lifestyle venture is backed by ace cricketer Virat Kohli, who is also its brand ambassador. The company’s revenue for FY23 stood at ₹344 crore, increasing more than 2% from ₹336 crore in the preceding fiscal.

ABFRL’s revenue from operations for the March quarter of the financial year ended March 31, 2024, grew 18% to ₹3,406.65 crore compared to ₹2,879.73 crore in the same quarter of the preceding fiscal. Sequentially, the company’s revenue from operations fell 18% from ₹4,166.71 crore in the quarter ended December 2023.

The Aditya Birla Group company posted a net loss of ₹266.35 crore for the March quarter compared to a net loss of ₹194.54 crore on a year-on-year basis. The company’s net loss stood at ₹107.6 crore in Q3FY24.

ABFRL’s revenue from operations for FY24 grew nearly 13% to ₹13,995.86 crore compared to ₹12,417.9 crore in the preceding fiscal. The company’s net loss for FY24 expanded to ₹735.91 crore compared to a net loss of ₹59.47 crore in FY23.

Shares of ABFRL closed 2.74% lower at ₹321.45 apiece on the NSE.