On Thursday (May 22, 2025), shares of Aditya Birla Fashion started trading at a lower price of 66 percent. The reason behind this is to separate the posture fashion and lifestyle business from Aditya Birla Fashion. The date for this dimerger was set as a record date on May 22.
Aditya Birla fashioned shares opened at ₹ 97 on Thursday after the Dimerger. On Wednesday, the company’s shares were Rs. Closed at 269.15. On Thursday, shares of the company reached the lowest level of Rs 88.40. At the time of the market closed, the shares of Aditya Birla fashion closed at Rs 89.85.
The reason behind this reduction is not sales. Instead it is an arrangement. Aditya Birla Fashion Retail Limited will now trade in the stock market as a separate company. When a company is divided into two or more parts, the share is set on a record date.
The demerger was approved by the ABFRL board last year. After this dimmer, Madura Fashion and Lifestyle will be registered as a separate company. This section will be named ABLBL.
Under the approved plan, ABFRL will get a share for one share of ABLBL. As you can tell, ABLBL is preparing for listing on BSE and NSE. After this dimmer, a loan of Rs 1000 crore will be transferred to ABLBL. The remaining Rs 2000 crore loan will go to Aditya Birla Fashion and Retail Limited.
The reason behind this split is to install 2 major companies in the stock market. After this dimmer, the two companies will now be able to proceed with different capital and strategies. ABLBL includes Louis Philips, Van Hussein, Alan Soli, Petal England and Reebok.
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