ABFRL stock trades 67% lower on Madura Fashion and Lifestyle business demerger record date; check details

Shares of Aditya Birla Fashion and Retail (ABFRL) plummeted 66.98% to ₹88.80 apiece on the National Stock Exchange (NSE) on Thursday. The sharp decline in share price came on the back of the vertical demerger of ABFRL’s Madura Fashion and Lifestyle business into a newly incorporated company, Aditya Birla Lifestyle Brands Ltd (ABLBL).

However, if we put aside the demerger effect and compare it to the opening value of ₹98, the ABRFL scrip was down by 9.39%.

Thursday, May 22, was fixed as the record date for the demerger. This means shareholders whose name appears on the register of members as on today, will receive one fully paid-up equity share of ABLBL each for every one fully paid-up equity share of ABFRL they own, with a face value of ₹10 each.

At around 2:09 pm, the stock was trading 66.74% (or 8.72% relative to the opening price) lower at ₹89.45 per share on the NSE.

ABFRL’s corporate restructuring was first approved and announced last year in April and would lead to a split of assets and liabilities between the two companies. Further, ABFRL’s borrowing, which stood at about ₹3,000 crore (as of March 31, 2024), will be split between the two.

An estimated debt of ₹1,000 crore will be transferred to ABLBL, while the remaining balance of ₹2,000 crore will remain with ABFRL.

Additionally, ABFRL is expected to raise ₹2,500 crore within 12 months following the demerger.

The newly listed company, ABLBL, includes lifestyle brands like Louis Phillippe, Van Heusen, Allen Solly and Peter England. It also comprises casual wear brands such as American Eagle and Forever 21, sportswear brands like Reebok and its innerwear business under the Van Heusen brand.

ABFRL stock performance

The scrip closed in the red at ₹277.45, down 3.01% on Wednesday. Over the week, it has slumped 67.78% and 66.02% since the beginning of May. The share lost 68.05% on a year-to-date basis.

ABFRL share touched its 52-week high price of ₹364.40 on September 27, 2024.

ABFRL has a total market capitalisation of ₹10,915.29 crore, as of May 22, 2025, on the NSE.