Aditya Birla Fashion and Retail Ltd (ABFRL) shares went up nearly 5%. This happened after the company’s board said yes to split its business. The business will split into a new company called Aditya Birla Lifestyle Brands Ltd. (ABLBL). ABLBL will be listed separately after the split.
The news came after ABFRL’s board met on April 1. At that meeting, they let the management look at splitting the Madura Fashion & Lifestyle business.
ABFRL said the split is expected to give more value to its shareholders. Each listed company will have its own money structure, growth paths, and chances to make more value.
The split will happen through an NCLT plan. After the split, all ABFRL shareholders will own equal shares in both companies.
The move aims to give more focus and working freedom to the split companies. This will let them follow their own growth plans better. But the split needs approval from necessary authorities.
ABFRL’s shares went up after the split news. This shows the market sees the proposed restructuring in a positive way.