Key Points
Shares of fashion company Aditya Birla Fashion and Retail (ABFRL) on Tuesday hit the 10% upper circuit of Rs 232.85 on BSE after announcing plans to evaluate the vertical demerger of Madura Fashion & Lifestyle business from ABFRL into a separately-listed company...
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...
Following the demerger, ABFRL will be focused on high-growth segments where there are tailwinds in a shift from unbranded to branded, premiumization, rise of super premium & luxury, and rapid growth in Gen Z-focused digital-first brands...
The Madura Fashion & Lifestyle business segment (MFL), consisting of four lifestyle brands viz Louis Phillippe, Van Heusen, Allen Solly & Peter England along with casual wear brands viz..
Subsequent to the completion of the proposed demerger, ABFRL also intends to raise growth capital within 12 months to infuse strength into its balance sheet...
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