- By Aditya Pratap Singh
- Thu, 22 May 2025 11:16 AM (IST)
- Source:JND
Aditya Birla Fashion Share: To pursue more robust growth paths in their respective niche markets, Aditya Birla Fashion and Retail has split into two publicly traded companies. Following the company's separation of Aditya Birla Lifestyle Brands Ltd (ABLBL) from itself, shares of Aditya Birla Fashion and Retail Ltd (ABFRL) closed at Rs 99 on the NSE on Thursday. Since the demerged companies must be listed on the National Stock Exchange and the BSE by the end of next month, the spin-off will result in the listing of two distinct entities on the exchange.
The Shares of Aditya Birla Fashion and Retail dropped 65% as a result of the price adjustment following the demerger. At the time this report was written, the share price was Rs 93.90 per share. Aditya Birla Fashion & Retail shares were indicating a nearly 63% decline in the company's stock price from the previous close of Rs 268.95 on the NSE.
This is a result of the stock prices being deducted from the value of the new companies. Aditya Birla Fashion & Retail's fair value is established by the market, and the value of the resulting company, Aditya Birla Lifestyle Brands, will be established on each listing.
ABFRL declared earlier this month that May 22 would be the record date for the 1:1 spin-off of the business entities, meaning that one share of ABLBL would be issued for every share of ABFRL that was held. Shares of the demerged companies will only be available to shareholders who owned stock on the record date. Stock purchases made on or after the ex-demerger date will not qualify investors.
All of ABFRL's current contracts ended on Wednesday, May 21, and new ones were introduced today, Thursday, May 22. In a circular, the NSE stated that the lot size of the new F&O contract is 2,600 equity shares. Trading in news F&O contracts and the listed company ABRFL will start on Thursday, May 22, at 10 a.m.