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Aditya Birla Fashion To Raise Rs 2,500 Crore After Madura Demerger

• By  Textile Excellence
• April 22, 2024

Aditya Birla Fashion and Retail Ltd (ABFRL) is planning to raise Rs 2,500-crore equity capital within one year of the completion of its recently announced demerger of the Madura business. After the demerger, Aditya Birla Lifestyle Brands Ltd (ABLBL) will house the Madura business consisting of lifestyle brands like Louis Philippe, Van Heusen, Allen Solly and Peter England, casual wear brands like American Eagle and Forever 21, sportswear brand Reebok and inner wear brand Van Heusen.

The remaining businesses in ABFRL will be a portfolio of multiple growth platforms like value retail under Pantaloons and Style Up, ethnic, luxury retailing under The Collective, Galleries Lafayette etc. and New-age digital-first Fashion and Lifestyle brand TMRW.

The board of directors of ABFRL has recently approved the vertical demerger of Madura Fashion & Lifestyle business (MFL) from ABFRL into a newly-incorporated company named Aditya Birla Lifestyle Brands Ltd. The company will be listed separately after completion of the demerger which will be implemented through an NCLT scheme of arrangement. ABFRL shareholders are expected to have identical shareholdings in both the companies. The proposed demerger is subject to necessary approvals from shareholders, creditors, and regulators.

ABFRL will be a portfolio of multiple growth platforms like value retail under Pantaloons and Style Up, ethnic, luxury retailing under The Collective, Galleries Lafayette etc. and New-age digital-first Fashion and Lifestyle brand TMRW.