Aditya Birla Fashion & Retail: Aditya Birla Group company Aditya Birla Fashion and Retail Limited will demerge Madura Fashion & Lifestyle Business and list it separately on the stock exchange. The Board of Directors of ABFRL (Aditya Birla Fashion and Retail Ltd) has asked the management of the company to consider vertical demerger of Madura Fashion and Lystyle and its separate listing.
In a regulatory filing with the stock exchange, Aditya Birla Fashion and Retail Limited issued a statement saying that the proposed demerger will ensure separate listing of the two companies. The demerger will enable the creation of two separate listed companies and both companies can grow independently thereby enabling parallel value creation. Madura Fashion and Lystyle business has four lystyle brands which include Louis Philippe, Van Heusen, Allen Solly and Peter England. Apart from this, the innerwear business under Van Heusen along with casual wear brands American Eagle, Forever 21 sports brand Reebok also comes under it, which will be listed separately on the stock exchange.
Aditya Birla Fashion and Retail Limited said in the statement that after necessary approvals, the demerger process will be implemented through the Scheme of Arrangement of NCLT in which all the shareholders of Aditya Birla Fashion and Retail Limited will have stake in the new entity. . After the demerger, Aditya Birla Fashion and Retail Limited will focus on business in high-growth segments. The focus will shift from unbranded to branded, premium luxury. After this demerger, Aditya Birla Fashion and Retail Limited will raise capital within 12 months.
On the process of demerger of Madura Fashion and Lifestyle business from Aditya Birla Fashion and Retail Limited, Aditya Birla Group Chairman Kumar Mangalam Birla said, in the last few years, our fashion and retail business has grown from 2 brands in 2 categories to 20 brands in all lifestyle categories. Has prepared a portfolio of more than 100 brands. He said that greater simplification and streamlined architecture has been designed to unlock opportunities. He said this will help in enhancing value for shareholders in the long term.
In today's trading, shares of Aditya Birla Fashion and Retail closed at Rs 211.65 with a jump of 2.97 percent.
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