- Move to accelerate growth and value creation through two listed entities with clear structure & sharp capital allocation strategy
- ABFRL plans to raise ~ Rs. 2500 Cr equity capital within 12 months of demerger with promoter participation
Pursuant to the announcement on 01 April 2024, The Board of Directors of ABFRL, at its meeting today, has approved the proposal of vertical demerger of Madura Fashion & Lifestyle business (MFL Business) from ABFRL into a newly incorporated company named as Aditya Birla Lifestyle Brands Ltd. (ABLBL), which will be listed separately on completion of the demerger.
The demerger is expected to unlock significant value for the shareholders of ABFRL as each of the listed entities will have their own distinct capital structures, independent growth trajectories & value creation opportunities.
Post demerger, the two listed companies will be as follows:
Aditya Birla Lifestyle Brands Ltd. (ABLBL)
Will house the Business consisting of –
· Lifestyle brands – Louis Phillippe, Van Heusen, Allen Solly & Peter England
· Casual wear brands – viz. American Eagle & Forever 21
· Sportswear brand – Reebok
· Innerwear business under Van Heusen brand
Aditya Birla Fashion & Retail Ltd. (ABFRL)
Remaining businesses in ABFRL will be a portfolio of multiple growth platforms –
· Value Retail – Value & masstige fashion retail play under Pantaloons & Style Up
· Ethnic Portfolio – One of India’s most comprehensive ethnic wear portfolio covering multiple occasions, price points and consumer segments, including designer wear partnerships and recently acquired portfolio of TCNS brands
· Luxury – A fast-growing bridge to luxury & luxury platform of The Collective, Galleries Lafayette & select luxury brands
· Digital brands – TMRW – a leading portfolio of digital first fashion brands
Upon completion of the demerger, as per the share entitlement ratio approved by the Board and recommended by the independent valuer, the shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL, in addition to their existing shareholding in ABFRL.
