Aditya Birla Fashion Demerger: ABFRL Share Price Drops as Lifestyle Brands Spin-Off Begins

Aditya Birla Fashion and Retail Ltd (ABFRL), a prominent player in India’s fashion retail sector and part of the Aditya Birla Group, has undergone a significant corporate restructuring by demerging into two separate listed entities, ABFRL and Aditya Birla Lifestyle Brands Ltd (ABLBL).

This strategic move aims to unlock value by creating two focused companies with distinct business models and growth opportunities. The record date for this demerger has been fixed as Thursday, May 22, 2025.

Record Date and Shareholder Entitlement

In a regulatory filing dated May 12, 2025, ABFRL announced that May 22, 2025, would be the record date to determine equity shareholders eligible to receive shares of the newly formed entity, Aditya Birla Lifestyle Brands Ltd (ABLBL).

Existing shareholders of ABFRL as on this date are entitled to receive equity shares of ABLBL in a 1:1 ratio. This means for every one fully paid-up equity share of ABFRL held (face value of ₹10), shareholders will receive one fully paid-up equity share of ABLBL (face value of ₹10).

The shares of ABLBL will be issued and allotted to eligible shareholders, pending shareholder approval and regulatory clearances.

Demerger Effective Date and Trading Status

May 22, 2025, marks both the record date and the ex-date for the demerger. On this date, ABFRL shares will trade ex-demerged shares. This signals the formal separation of the lifestyle business from the parent company on the stock exchanges.

About Aditya Birla Lifestyle Brands Ltd

ABLBL will be the new entity housing the lifestyle brands previously under Madura Fashion & Lifestyle, a wholly owned subsidiary of ABFRL. Key brands under ABLBL include Louis Philippe, Van Heusen, Allen Solly, and Peter England, all renowned names in the Indian apparel market. This focused entity will aim to sharpen brand positioning, drive growth, and enhance operational efficiency within the lifestyle segment.

Share Listing and Regulatory Compliance

The equity shares of the demerged company, ABLBL, are proposed to be listed on India’s leading stock exchanges, BSE Limited and the National Stock Exchange of India Limited (NSE). The company stated that the listing date will be announced separately post allotment and after obtaining the necessary regulatory approvals.

The listing of ABLBL shares will provide existing ABFRL shareholders direct exposure to the lifestyle brands business, enabling clearer investment choices aligned with their preferences.

Aditya Birla Fashion and Retail Share Price Performance

On May 22, 2025, ABFRL share price opened at ₹98.00, down from its previous close of ₹268.95. At 11:01 AM, the share price of ABFRL was trading at ₹91.25, down by 6.89% from the open price and 66.07% from the issue price on the NSE.

Also Read: Aditya Birla Capital Merges Aditya Birla Finance to Form a Larger NBFC!

Conclusion

Aditya Birla Fashion and Retail Ltd’s demerger into two listed entities, ABFRL and Aditya Birla Lifestyle Brands Ltd, marks a pivotal moment for the company and its shareholders. With the record date set for May 22, 2025, shareholders will receive shares in the new lifestyle business on a 1:1 basis.

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