Aditya Birla Fashion demerger record date on Thursday. 6 key things to know

Aditya Birla Fashion and Retail's (ABFRL) will be in focus on Thursday May 22 which will be the record date for its demerger. The stock traded ex-demerger today, ending the session with a decline.

ABFRL has demerged into two listed entities – ABFRL and Aditya Birla Lifestyle Brands Ltd (ABLBL). Only those shareholders who hold the stock as of the record date will be eligible to receive shares of the demerged entities. Investors buying the stock on or after the ex-demerger date will not be entitled to the demerged shares.

In a regulatory filing on May 12, ABFRL had informed the exchanges about the record date.


“…we wish to inform you that, in accordance with the terms of the Scheme, Thursday, May 22, 2025 has been fixed as the Record Date for the purpose of ascertaining the equity shareholders of the company who will be entitled to be issued equity shares of ABLBL pursuant to the Scheme,” the filing said.

5 key things to know:

1) Upon completion of the demerger, the shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL, in addition to their existing shareholding in ABFRL.

2) The business assets and liabilities will be split between the two companies in accordance with the prescribed regulatory provisions. In line with this, the overall ABFRL borrowing, which is estimated to be Rs 3,000 crore as of March 31, 2024, will be split between the two companies.

3) The estimated debt to be transferred to ABLBL will be Rs 1,000 crore and the balance will continue to stay with ABFRL.

4) The demerger is expected to unlock value for the shareholders of ABFRL as each of the listed entities will have their own distinct capital structures, independent growth trajectories and value creation opportunities, a company filing said.

5) ABFRL plans to raise Rs 2,500 crore equity capital within 12 months of demerger with promoter participation.

6) ABFRL/Aditya Birla Lifestyle Brands business break-up

ABLBL will house the business consisting of Lifestyle brands (Louis Phillippe, Van Heusen, Allen Solly & Peter England), casual wear brands (American Eagle & Forever 21), Sportswear brand (Reebok) and (Innerwear business under Van Heusen brand).

In case of ABFRL, the remaining businesses will be a portfolio of multiple growth platforms viz. Value Retail (Value & masstige fashion retail play under Pantaloons & Style Up), ethnic portfolio (ethnic wear portfolio including designer wear partnerships and recently acquired portfolio of TCNS brands),
luxury and digital brands - TMRW.

The company announced about its demerger plans on April 1 2024 and the board of ABFRL approved the proposal of vertical demerger of Madura Fashion and Lifestyle business (MFL Business) from ABFRL into a newly incorporated company named as Aditya Birla Lifestyle Brands (ABLBL) on April 19, 2024.

ABLBL will be listed separately on completion of the demerger.

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