Aditya Birla Fashion (ABFRL Demerger 2025) Explained: Aditya Birla Fashion and Retail Limited (ABFRL) has undertaken a major restructuring move — a demerger that creates two separate companies. This change is designed to create two focused businesses, each with its own set of brands and growth plans.
If you hold shares in ABFRL or follow the company, here’s what you should know.
What Is Happening in the ABFRL Demerger 2025?
Aditya Birla Fashion and Retail Limited(ABFRL) is engaged in the business of manufacturing, marketing, sales and/or distribution of fashion apparel, footwear and accessories through offline and/or online channels including wholesale, retail and e-commerce under multiple owned and licensed brands.
Aditya Birla Lifestyle Brands Limited(ABLBL) is a public limited Company incorporated in India for the purpose of proposed demerger.
The demerger involves moving ABFRL’s Madura Fashion & Lifestyle division(MF&L) business into a newly formed company called Aditya Birla Lifestyle Brands Limited (ABLBL). Meanwhile, ABFRL will continue with its other businesses such as ethnic wear, luxury brands, and digital-first fashion labels.
Why the Demerger?
Each company will focus on different brand portfolios and markets, Demerger allows clearer focus, better operational efficiency, and potentially improved market valuation for each. After Demerger Brand Focus of Company would be as follows,
| Company | Brand Focus |
|---|---|
| Aditya Birla Fashion and Retail Limited(ABFRL) | Ethnic wear (including the recently acquired TCNS), luxury brands like The Collective, Galeries Lafayette, and digital-first brands (TMRW) etc. |
| Aditya Birla Lifestyle Brands Limited(ABLBL) | Lifestyle brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, American Eagle, Forever 21, Reebok, Van Heusen innerwear |
ABFRL Demerger 2025: Key Dates at a Glance
| Event | Date | Description |
|---|---|---|
| Appointed Date | April 1, 2024 | Date from which accounting effects apply. |
| Record Date | May 22,2025 | Date on which shareholder eligibility is determined for receiving ABLBL shares. |
How Will This Affect The Companies?
- Both companies will have identical shareholding structures and separate management teams.
- The financial and operational performance of each will be easier to track since their business models differ significantly.
- Individual business strategies and clear capital allocation
- This may help the market better understand and value each company on its own merits.
What This Means for Shareholders
- For every Aditya Birla Fashion and Retail Limited(ABFRL) share you own, you will receive one share in Aditya Birla Lifestyle Brands Limited(ABLBL).
- Your ownership percentage stays the same in both companies.
- There is no dilution or loss of shares.(They’re just split between two separate companies).
What Should Shareholders Keep in Mind?
- The demerger is a legal and structural change, not a sale or new investment offer.
- Your shareholding will now be split between two companies with different brand portfolios and growth plans.
- Each company will report its own financial results, giving shareholders more clarity on where value is coming from.
- Keeping an eye on ongoing disclosures and company updates will help stay informed about how both businesses perform.
Final Thoughts
Through the ABFRL demerger, the company has created two distinct businesses, each with a focused strategy and operating model. This separation also brings greater clarity in financial reporting, making it easier to follow the progress of each entity individually.
Staying updated with company announcements will provide further clarity on the performance of both ABFRL and ABLBL.
FAQs
Q1: Will I lose any shares because of this demerger?
A: No. For every ABFRL share you hold, you will get one share in ABLBL. Your total shares remain the same, just divided between two companies.
Q2: What businesses will each company focus on?
A: ABFRL will focus on ethnic wear and luxury brands. ABLBL will focus on lifestyle, casual, sportswear, and innerwear brands.
Q3: When does this demerger take effect?
A: The appointed date is April 1, 2024 (for accounting), and the Record date is May 22, 2025 (Shareholder eligibility).
Q4: Is this a sale or buyback of shares?
A: No. It is a corporate restructuring where shares are split between two companies, not a sale or buyback.
Q5: When Will ABLBL Shares Be Listed?
A: ABLBL Shares is listed on 23rd June 2025
Q6: Where can I find more detailed information?
A: Visit the official ABFRL investors page for all scheme documents, approvals, and disclosures.
- Cool Caps Industries Share Split 2025 – Record Date, Split Ratio, Key Dates, and FAQ’s
- Paras Defence & Space Share Split 2025 – Record Date, Split Ratio, Ex Date & FAQs
- ✅Globe Civil Projects IPO Date, Price, GMP, Review, Details 2025
- ✅ Arisinfra Solutions IPO Allotment Status Online 2025 – Check Now
- ✅ Influx Healthtech IPO Allotment Status Online 2025 – Check Now
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments and consult their investment advisor before making any investment decisions. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Upcomingipo is not responsible for any errors or omissions or for the results obtained from the use of such information. Any reliance you place on such information is therefore strictly at your own risk. User shall confirm the accuracy of the information before using of the same from the official website of respective authority in the respective subject at user end.