Aditya Birla Fashion and Retail Ltd (ABFRL) has demerged its Madura Fashion & Lifestyle business into a separate listed entity, Aditya Birla Lifestyle Brands Ltd (ABLBL), effective May 22, 2025. Here are the key details:
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Demerger Overview: The demerger splits ABFRL into two focused listed entities to enhance operational efficiency and unlock value. ABLBL will house lifestyle brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, American Eagle, Forever 21, and Van Heusen innerwear, which account for
85% of ABFRL’s revenue. The remaining ABFRL will manage Pantaloons, ethnic brands (e.g., TCNS Clothing, Sabyasachi, Tarun Tahiliani, Masaba), premium brands (e.g., Tasva, Jaypore), and luxury retail (e.g., The Collective, Galeries Lafayette
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Share Ratio and Record Date: Shareholders of ABFRL as of the record date, May 22, 2025, receive one fully paid-up share of ABLBL (face value ₹10) for every ABFRL share (face value ₹10) held, in a 1:1 ratio
Stock Price Impact: On May 22, 2025, ABFRL shares fell 63-67% to ₹88.80-₹99 on NSE and BSE, hitting a 52-week low, due to the ex-demerger price adjustment. The price drop reflects the market’s valuation of ABFRL without the Madura Fashion business, as the value of ABLBL will be determined upon its listing
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Financial Reorganization: ABLBL will take on ₹1,000 crore of ABFRL’s ₹3,000 crore debt (as of March 31, 2024), while ABFRL retains ₹2,000 crore. ABFRL plans to raise ₹2,500 crore within 12 months post-demerger to strengthen its balance sheet
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Valuation and Outlook: Brokerage firm Bernstein estimates ABLBL’s fair value at ₹185-₹215 per share and ABFRL’s post-demerger value at ₹80-₹105 per share. ABFRL projects a 20% revenue CAGR and a 7% EBITDA margin by FY2030 for the remaining entity, with RoCE exceeding 18%.
Listing Details: ABLBL’s listing date will be announced after share allotment, expected on BSE and NSE by June 2025
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