Aditya Birla and Pantaloon zoom
Aditya Birla Nuvo Ltd (ABNL) is the top gainer on the BSE, up almost 10.5% currently at Rs.1732 with an intra day high at Rs.1773.55. Volumes are up over 8 times. Pantaloon Fashion opened at Rs.135 and soon hit the 20% upper circuit filter at Rs.136.60 and volumes are up 11 times.
Both the stocks are up after the group announced consolidation of its garments business into a single entity. It will be merging ABNL with Pantaloon Fashion and Maudra Garments, going on to create India’s largest branded apparel player, valued at Rs.12,000 crore.
As per the scheme, ABNL shareholders will get 26 new equity shares of Pantaloon for every 5 share held. Madura Fashion and Madura Lifestyle will be demerged from respective companies into Pantaloon. Madura shareholders will get 7 new shares of Pantaloon for every 500 held in Madura Garments Lifestyle and preference shareholders will get 1 new equity share of Pantaloon.
The appointed date of scheme will be 1st April 2015 and the transaction is expected to be completed in the next 6-9 months. The consolidated entity is named Aditya Birla Fashion & Retail and this will have 1,869 stores, 5 million square feet of space. The Aditya Birla group will hold 51% stake in this new company.