Aditya Birla Fashion Shares Adjusted 66% Lower Following Lifestyle Brands Demerger

Shares of

rla Fashion and Retail (ABFRL) saw a significant technical adjustment today, dropping over 66% on the National Stock Exchange (NSE). This sharp decline is not a selloff, but rather a direct consequence of the company's lifestyle brands business being spun off into a separate listed entity. With today, May 22, 2025, being the ex-date for the demerger, ABFRL shares were adjusted to reflect the exclusion of the value of the demerged business. The record date for determining shareholder eligibility for the demerger was set as May 22. The stock closed at Rs 89.90 on the NSE, a 66.56% decrease from its previous close of Rs 268.95 on Wednesday. This adjustment reflects the demerger of ABFRL’s lifestyle brands vertical into a new company, Aditya Birla Lifestyle Brands (ABLBL). Existing shareholders will receive one share of ABLBL for every share held in ABFRL, based on the approved 1:1 ratio. Following the restructuring, ABFRL will continue to operate its other diverse verticals, which include: Value retail under prominent brands such as Pantaloons and Style Up. Ethnic wear, encompassing TCNS Clothing and various designer partnerships. The luxury and bridge-to-luxury segment, featuring The Collective, Galleries Lafayette, and a portfolio of premium international brands. Digital-first brands managed under the TMRW platform. The newly formed entity, ABLBL, will house a portfolio of marquee fashion labels, including Louis Philippe, Van Heusen, Allen Solly, and Peter England. It will also manage global names like American Eagle and Forever 21, along with the Reebok franchise and the innerwear segment under Van Heusen.