Aditya Birla Fashion and Retail Ltd (ABFRL) has demerged into two listed entities—ABFRL and ABLBL—effective May 22, 2025. Shareholders will receive one ABLBL share for every ABFRL share held.
Aditya Birla Fashion share price declined over 66 per cent from its last closing price on Thursday as May 22 marks the record date for the company’s demerger of its Madura Fashion & Lifestyle business into a separate listed entity.
Aditya Birla Fashion share price was trading over 66 per cent below its last closing price in trade on Thursday, May 22, as today is the record date for the spin-off of Madura Fashion & Lifestyle business into a separate-listed entity.
Investors saw the share price sharply lower by 66.56 percent at Rs 89.90 on the National Stock Exchange (NSE), down from its previous close of Rs 268.95 on Wednesday.
ABFRL share price opened at ₹97 following the demerger as against its previous closing price of ₹269.15 on Wednesday. In intra-day trade, the stock touched a low of ₹88.80 apiece.
The demerger, which received approval from ABFRL’s board last year, entails the vertical split of the Madura Fashion and Lifestyle (MFL) division into a separate company named ABLBL.
Aditya Birla Fashion will be eligible to receive one share of the demerged entity, Aditya Birla Lifestyle Brands Ltd, for every one share that they own as of the record date. “…1 fully paid-up equity share of ABLBL having face value of Rs 10 each for every 1 fully paid-up equity share of Rs 10 each of the company shall be issued and allotted by ABLBL to the equity shareholders of the company holding equity shares as on the Record Date
This restructuring aims to establish two independent publicly listed companies, each with its own capital framework and strategic growth plans. ABLBL will include well-known brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, and Reebok, along with casual wear labels like American Eagle and Forever 21, and the innerwear line under Van Heusen.
The demerger is set to be carried out through a scheme of arrangement under the NCLT. After the process is finalised, shareholders will retain the same ownership stakes in both ABFRL and the newly formed ABLBL.
The newly-carved entity ABLBL will house marquee fashion labels including Louis Philippe, Van Heusen, Allen Solly, Peter England, as well as global names like American Eagle and Forever 21. It will also manage the Reebok franchise and the innerwear segment under Van Heusen.
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