Aditya Birla Fashion and Retail Ltd is grabbing investor attention as May 22 marks the crucial date for its demerger. Investors must purchase shares by the end of May 21 (under the T+1 settlement cycle) to be eligible for shares in the newly formed Aditya Birla Lifestyle Brands Ltd., which will be issued at a 1:1 ratio.
The record date and ex-date fall on May 22, when the share price of Aditya Birla Fashion and Retail will adjust to reflect the spin-off. On this day, shareholders will receive one share of Aditya Birla Lifestyle Brands for each share they hold in the parent company.
A special pre-open session will determine the constant price of the new Aditya Birla Lifestyle Brands shares. This value is calculated by subtracting the opening price of the new company’s shares from the closing price of Aditya Birla Fashion and Retail on May 21. The listing date of the new company’s shares will be announced separately.
Aditya Birla Lifestyle Brands will house some of the group’s prominent fashion labels, including Louis Philippe, Van Heusen, Allen Solly, Peter England, as well as casual wear brands American Eagle and Forever 21. It will also include sportswear brand Reebok and the innerwear business under the Van Heusen label.
The demerger involves a division of assets and liabilities between the two companies. Aditya Birla Fashion and Retail’s borrowings stood at approximately ₹3,000 crore as of March 31, 2024. Around ₹1,000 crore of this will transfer to the new Lifestyle Brands entity, while the remainder stays with the parent company.
Post-demerger, Aditya Birla Fashion and Retail plans to raise ₹2,500 crore within 12 months to strengthen its balance sheet and fund its ongoing business operations.
Aditya Birla Fashion & Retail (ABFRL), a prominent mid-cap player in the retail sector, saw its share price at ₹273.55, down by 1.41% or ₹3.90 at 12:35 PM on the NSE. The stock is currently trading lower amid heightened market activity ahead of the company’s upcoming demerger, which has investors closely monitoring price movements as the May 22 record date approaches.
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This demerger is a strategic move to allow both entities to focus on their core strengths Aditya Birla Lifestyle Brands on premium lifestyle and fashion, and Aditya Birla Fashion and Retail on its broader retail portfolio and profitability. For investors, May 21 is the last day to buy shares and be eligible for the new company’s equity, making it a critical date to watch.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 21, 2025, 4:32 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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