ABFRL in vogue today

Aditya Birla Fashion and Retail Ltd (ABFRL), after a long time is wowing the streets, figuring among the top three gainers on the BSE currently; opening 10% higher at Rs.232.85, the stock rose to an intraday high at Rs.247.15, up 16.5%. Volumes on the counter at huge at 14.5x.

The stock price zoomed up on its announcement that it is planning to demerge Madura Fashion & Lifestyle into a separate listed entity.

Madura Fashion consists of four lifestyle brands - Louis Phillippe, Van Heusen, Allen Solly and Peter England, American Eagle, Forever 21, Reebok, Van Heusen - and contributes to more than 70% of the company’s total revenue.

Post demerger, ABFRL will hold the brand of Pantaloon, Style Up, some ethnic wear brands , digital brand – TMRW and luxury platform of The Collective, Galleries Lafayette & select luxury brands.

The company said that subsequent to the completion of the proposed demerger, ABFRL will raise growth capital within 12 months to infuse strength into its balance sheet.