Aditya Birla Fashion shares surge over 12% on demerger plans

Shares of Aditya Birla Fashion and Retail surged over 12% on Tuesday morning, April 2nd, after the company’s board authorized the management to evaluate the vertical demerger of the Madura Fashion & Lifestyle business from ABFRL into a separate listed company.

Around 1.34 crore shares of Aditya Birla Fashion & Retail (1.41 percent equity) worth Rs 322.5 crore changed hands at an average of Rs 243 per share, as reported by CNBC-TV18.


The proposed demerger will enable the creation of two separately listed companies as independent growth engines with distinct capital structures and parallel value creation opportunities, according to the company’s release.

As of 9:50 am, the shares were trading 12.36% higher at ₹237.80.

The demerger will be implemented through an NCLT scheme of arrangement, and all shareholders of ABFRL will have identical shareholding in the newly formed entity, stated the filing.