ABFRL shares rise 3% as NCLT approves demerger of Madura Fashion business

Aditya Birla Fashion and Retail shares advanced 3.3 per cent in trade on Friday, March 28, 2025, logging an intraday high at ₹265 per share on BSE. The stock was in demand after the National Company Law Tribunal (NCLT) approved the Scheme of Arrangement among Aditya Birla Fashion and Retail Limited and Aditya Birla Lifestyle Brands Limited.

 

Around 11:02 AM, Aditya Birla Fashion share price was up 2.69 per cent at ₹263.25 per share on BSE. In comparison, the BSE Sensex was up 0.10 per cent at 77,685.58. The market capitalisation of the company stood at ₹32,122.34 crore. The 52-week high of the stock was at ₹364.5 per share and the 52-week low was at ₹202.9 per share.

 

 

"In furtherance to our earlier intimations on the Scheme of Arrangement among Aditya Birla Fashion and Retail Limited (“Demerged Company”), Aditya Birla Lifestyle Brands Limited (“Resulting Company”) and their respective shareholders and creditors (“Scheme”), this is to inform you that Hon’ble NCLT vide its order dated March 27, 2025, has sanctioned the Scheme filed by the company," the filing read.  

 

According to the petition filed, the scheme is being proposed to separate Madura Fashion and Lifestyle (MFL) business from the company. The MFL business has built a leadership position over a long period of time and has a proven track record of delivering consistent revenue growth, profitability, strong free cash flows, and high return on capital.

 

The proposed scheme would be in the best interests of Aditya Birla Fashion and Retail Limited and Aditya Birla Lifestyle Brands Limited.

 

Further, after the demerger, MFL business will be separately listed. 

 

"The distinctive profile and established business model of the MFL Business makes it suitable to be housed in a separately listed entity, allowing sharper strategic focus in pursuit of its independent value creation trajectory," the filing read.  

 

The scheme would also unlock value for the overall business portfolio through price discovery of the individual entities for existing shareholders.

 

Besides, Aditya Birla Fashion and Retail Limited will house multiple growth platforms across value and masstige retail, branded ethnic business, super premium and luxury retail formats and a portfolio of digital brands and will chart its own growth journey. 

 

In the past one year, Aditya Birla Fashion shares have gained 24.7 per cent against Sensex's rise of 5.3 per cent.