Aditya Birla Fashion & Retail Ltd Share Price – NSE  /  BSE

Retail, Small Cap

Aditya Birla Fashion and Retail announced that an Extra Ordinary General Meeting (EGM) of the Company will be held on 5 June 2024 .

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Aditya Birla Lifestyle Brands (ABLBL) 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 and value creation opportunities.

The business assets and liabilities will be split between the two companies in accordance with the prescribed regulatory provisions. In line with this, the overall ABFRL borrowing, which is estimated to be around Rs 3,000 crore as of 31st March 2024, will be split between the two companies. The estimated debt to be transferred to ABLBL will be approximately Rs 1,000 crore and the balance will continue to stay with ABFRL.

Post-demerger, Aditya Birla Lifestyle Brands will be the house of the business consisting of Lifestyle Brands - Louis Phillippe, Van Heusen, Allen Solly & Peter England, Casual wear brands - American Eagle & Forever 21, Sportswear brand – Reebok, innerwear business under Van Heusen brand. Remaining businesses in ABFRL will be a portfolio of multiple growth platforms.

The shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL, in addition to their existing shareholding in ABFRL.

Within 12 months after the completion of the demerger, ABFRL plans to raise approximately Rs 2,500 crore equity capital to strengthen its balance sheet and fund the growth of the remaining businesses. The company’s promoter group will fully support the proposed equity raise.

Aditya Birla Fashion and Retail (ABFRL) is engaged in the business of manufacturing and retailing of branded apparels and runs a chain of apparels and accessories retail stores in India. As on 31 December 2023, the company has a network of 4,753 stores across approximately 37,106 multi-brand outlets with 9,781 point of sales in department stores across India.

The company reported a consolidated net loss of Rs 107.60 crore in Q3 FY24 as compared with net profit of Rs 11.21 crore posted in Q3 FY23. Revenue from operations grew by 16.1% year on year to Rs 4,166.71 crore during the quarter.

The scrip rose 0.81% to end at Rs 231.40 on Friday, 19 April 2024.

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Aditya Birla Capital Ltd, Varroc Engineering Ltd, Century Plyboards (India) Ltd, Tanla Platforms Ltd are among the other stocks to see a surge in volumes on NSE today, 02 April 2024.

Aditya Birla Fashion & Retail Ltd registered volume of 820.93 lakh shares by 14:14 IST on NSE, a 28.17 fold spurt over two-week average daily volume of 29.14 lakh shares. The stock rose 12.88% to Rs.238.90. Volumes stood at 19.43 lakh shares in the last session.

Aditya Birla Capital Ltd saw volume of 388.31 lakh shares by 14:14 IST on NSE, a 11.96 fold spurt over two-week average daily volume of 32.46 lakh shares. The stock increased 8.96% to Rs.198.15. Volumes stood at 48.81 lakh shares in the last session.

Varroc Engineering Ltd saw volume of 20.51 lakh shares by 14:14 IST on NSE, a 9.85 fold spurt over two-week average daily volume of 2.08 lakh shares. The stock increased 7.77% to Rs.552.10. Volumes stood at 1.81 lakh shares in the last session.

Century Plyboards (India) Ltd witnessed volume of 12.7 lakh shares by 14:14 IST on NSE, a 7.88 times surge over two-week average daily volume of 1.61 lakh shares. The stock increased 0.04% to Rs.650.00. Volumes stood at 1.03 lakh shares in the last session.

Tanla Platforms Ltd notched up volume of 36.42 lakh shares by 14:14 IST on NSE, a 7.26 fold spurt over two-week average daily volume of 5.01 lakh shares. The stock rose 11.44% to Rs.938.25. Volumes stood at 4.99 lakh shares in the last session.

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The Madura Fashion & Lifestyle business segment (MFL), consisting of four lifestyle brands such as Louis Phillippe, Van Heusen, Allen Solly & Peter England along with casual wear brands like American Eagle & Forever 21, sportwear brand Reebok and the innerwear business under Van Heusen will be demerged into a separate listed entity.

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.

Post demerger, the company will be focused on high-growth segments where there are tailwinds from a shift from unbranded to branded, premiumization, rise of super premium & luxury, and rapid growth in Gen Z focused digital first brands. This is an attractive portfolio comprising of multiple high growth segments in large addressable markets with strong value creation opportunities.

The company said that subsequent to the completion of the proposed demerger, it will raise growth capital within 12 months to infuse strength into its balance sheet, positioning itself well to pursue the large growth opportunity that lies ahead of it.

Kumar Mangalam Birla, chairman, Aditya Birla Group, said, “Over the years, our fashion and retail business, has grown from 5 brands in 2 categories, to a dynamic portfolio of more than 20 brands across all lifestyle categories. The evolution of this portfolio has seamlessly mirrored the shift in consumption trends, with a play encompassing all large value creation opportunities.

The platform embarks on its next transformational phase of growth, there is scope to re-evaluate capital structures to optimize different parts of the portfolio. The move towards a more simplified and streamlined architecture is designed to unlock distinct opportunities for value creation. This strategic realignment is poised to significantly enhance long-term stakeholder value.”

Ashish Dikshit, MD, Aditya Birla Fashion and Retail, said, “Each of these businesses have always been operated autonomously under respective CEOs.” He added, “Indian fashion and apparel sector is USD 100bn+ sector and is poised for a double-digit long-term growth. The simplified structure positions the businesses well for sustained growth and value creation.”

The company reported a consolidated net loss of Rs 107.60 crore in Q3 FY24 as compared with net profit of Rs 11.21 crore posted in Q3 FY23. Revenue from operations grew by 16.1% year on year to Rs 4,166.71 crore during the quarter.

Aditya Birla Fashion and Retail (ABFRL) is engaged in the business of manufacturing and retailing of branded apparels and runs a chain of apparels and accessories retail stores in India. As on 31 December 2023, the company has a network of 4,753 stores across approximately 37,106 multi-brand outlets with 9,781 point of sales in department stores across India.

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