ABFRL said the board approved the demerger of Madura Fashion & Lifestyle business into a newly incorporated company - Aditya Birla Lifestyle Brands (ABLBL)
Shares of Aditya Birla Fashion and Retail (ABFRL) gained nearly a percent at the open on the NSE on April 22 after the company's board approved the demerger of Madura Fashion and Lifestyle Business (MFL) from Aditya Birla Lifestyle Brands.
In a report, ABFRL said the board approved the demerger of Madura Fashion & Lifestyle business into a newly incorporated company - Aditya Birla Lifestyle Brands (ABLBL). After the demerger, ABLBL will be listed separately.
All shareholders of ABFRL will have an identical shareholdings in both companies (ABLBL & ABFRL). "The shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL in addition to their existing shareholding in ABFRL," the release said.
According to the company, within 12 months of the completion of the demerger, ABFRL plans to raise Rs 2,500 crore equity capital "to strengthen its balance sheet and fund the growth of the remaining businesses".
ABFRL is yet to announce its Q4 results. In the third quarter, it reported a consolidated net loss of Rs 107.60 crore against a net profit of Rs 11.21 crore in the year-ago period.
