Why did ABFRL share price crash 67% to ₹88 from ₹269 in trade today?

Aditya Birla Fashion Demerger: ABFRL shares crashed 67 per cent to its 52-week low at ₹88.8 per share; chek details

ABFRL share price: Aditya Birla Fashion and Retail (ABFRL) stock price slumped from ₹269.15 per share to ₹88.8, crashing 67 per cent in trade on Thursday, to its 52-week low on BSE. The scrip tanked on the ex-demerger date of Madura Fashion and Lifestyle (MFL) into a separate listed entity.

 

The ex-demerger date is the date on which a stock starts trading without the value of the demerged entity.

 

"We wish to inform you that, in accordance with the terms of the Scheme, Thursday, May 22, 2025 has been fixed as the "Record Date” for the purpose of ascertaining the equity shareholders of the Company who will be entitled to be issued equity shares of Aditya Birla Lifestyle Brands pursuant to the Scheme.

 

The filing further informed that according to the approved scheme, shareholders of the company will receive 1 fully paid-up share of Aditya Birla Lifestyle Brands (face value ₹10) for every 1 fully paid-up share of Aditya Birla Fashion and Retail (face value ₹10) they hold as of the record date.

 

At 11:40 AM, ABFRL shares were down 5.21 per cent at ₹91.95 per share on the BSE. In comparison, the BSE Sensex was down 1.01 per cent at 80,775.13. The market capitalisation of the company stood at ₹11,195.95 crore. The 52-week high of the stock was at ₹364.5 per share and the 52-week low of the stock was at ₹88.8 per share.   READ STOCK MARKET UPDATES TODAY LIVE 

ABFRL demerger details: 

Last year, ABFL's board approved the demerger of Madura Fashion and Lifestyle (MFL) division into a separate company named Aditya Birla Lifestyle Brands. 

 

The MFL business includes four lifestyle brands-- Louis Phillippe, Van Heusen, Allen Solly and Peter England along with casual wear brands-- American Eagle and Forever 21, sports wear brand Reebok and the innerwear business under the Van Heusen brand.

 

The two main objectives of the demerger were:  

One, the distinctive profile and established business model of the MFL business makes it suitable to be housed in a separately listed entity.  ALSO READ | Fortis Healthcare rallies 9%, nears record high; brokerages see more upside

 

Second, the demerger will result in better and more efficient control and management for the segregated businesses, operational rationalisation, organisation efficiency and optimum utilisation of various resources.

About ABFRL

Maharatna ONGC is the largest producer of crude oil and natural gas in India, contributing around 70 per cent of Indian domestic production. It has a unique distinction of being a company with in-house service capabilities in all areas of Exploration and Production of oil & gas and related oil-field services.