New Delhi, Apr 2 (PTI) Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) on Tuesday ended 12 per cent higher after the company announced the demerger of its fast fashion and retail business Madura Fashion & Lifestyle into a separate listed entity to unlock opportunities for value creation.
The stock climbed 16.86 per cent to Rs 247.40 during the day on the BSE. It later ended at Rs 236.15, up 11.55 per cent.
Shares of the company rallied 11.97 per cent to settle at Rs 237 on the NSE. During the day, it jumped 16.93 per cent to Rs 247.50.
The ABFRL board, at its meeting held on Monday, authorised the management of the company to evaluate the vertical demerger of Madura Fashion & Lifestyle business, according to a company statement.
"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," it said.
Moreover, after the completion of the proposed demerger, ABFRL "will raise growth capital within 12 months" to strengthen its balance sheet, and pursue the large growth opportunity, it added.
The Madura Fashion & Lifestyle (MFL) business consists of four fast fashion brands - Louis Philippe, Van Heusen, Allen Solly and Peter England - along with casual wear brands viz. American Eagle and Forever 21. PTI SUM SUM BAL BAL
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