ABFRL Stock Plummets 65% in a Day Amid Demerger Announcement

Quick Summary

• Aditya Birla Fashion and Retail (ABFRL) shares settled at Rs 99 on the NSE after announcing its demerger with Aditya Birla Lifestyle Brands Ltd (ABLBL).
• Following the restructuring, two entities will now be separately listed on both the BSE and NSE by next month.
• ABFRL shares recorded a sharp decline of 65%,dropping from Rs 268.95 to Rs 99, attributed to the subtraction of value for the newly demerged entity.
• The spin-off ratio is set as 1:1, meaning shareholders will recieve one ABLBL share for each ABFRL share they own as of the record date (May 22).
• Investors purchasing ABFRL stock after the ex-demerger date will not be eligible for ABLBL shares.
• The new structure places brands such as Pantaloons, Sabyasachi, Tarun Tahiliani under ABFRL; while western wear brands like Reebok, American Eagle, and legacy labels such as Louis Philippe and Allen solly are placed under ABLBL.

!