Aditya Birla Lifestyle to raise Rs 2500 crore post demerger of Madura Fashion

22 Apr 2024 , 02:21 PM

Following the approval of the demerger of Madura Fashion and Lifestyle Business (MFL) from Aditya Birla Lifestyle Brands by the company’s board, shares of Aditya Birla Fashion and Retail (ABFRL) opened on the NSE on April 22 with a gain of about 1%.

The board approved the demerger of Madura Fashion and Lifestyle into a newly incorporated company, Aditya Birla Lifestyle Brands (ABLBL), according to a release issued by ABFRL on April 19. ABLBL will have a separate listing following the demerger.

Every ABFRL shareholder will own the same amount of shares in both ABFRL and ABLBL.  “The shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL in addition to their existing shareholding in ABFRL,” the press statement stated.

The company states that ABFRL intends to raise ₹2,500 Crore in equity capital within a year of the demerger’s conclusion “to strengthen its balance sheet and fund the growth of the remaining businesses.”

ABFRL has not yet released its Q4 earnings. Compared to a net profit of ₹11.21 Crore during the same time last year, it posted a combined net loss of ₹107.60 Crore in the third quarter.

With ₹4,166.71 Crore in revenue, it was 16% more than the previous fiscal year. EBIDTA, or earnings before interest, tax, depreciation, and amortisation, increased by 29% to ₹605 Crore for the quarter.

For feedback and suggestions, write to us at [e-mail]