Aditya Birla Lifestyle Brands lists on stock market debut after demerger; check details
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Aditya Birla Lifestyle Brands lists on stock market debut after demerger; check details
Shares of Aditya Birla Lifestyle Brands (ABLBL) made its stock market debut on Monday as a separate legal entity. The stock kicked-off its maiden trading session at Rs 167.75 on Monday, lower than its demerged value of Rs 172.15 from ABFRL. ABLBL commanded a total market capitalization of close to Rs 20,500 crore. The company will be left with a debt of Rs 700-800 crore now, which it aims to repay in next two to three years. The western wear legacy brands, growth brands like Reebok, American Eagle and Van Heusen innerwear will all be housed under the Demerged entity, AdityA BirlA Lifestyle brands Ltd. The demerced entity will also be housing the Madura Fashion, Louis Philippe, Van HeUSen, Allen Solly, Peter England and GalNikhil.
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Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) demerged Aditya Birla Lifestyle Brands Ltd (ABLBL) from itself on May 22, 2025 and to stock was relisted as a separate entity on today. The spin-off led to the listing of two separate companies on the stock exchanges. ABLBL commanded a total market capitalization of close to Rs 20,500 crore.
However, the global brokerage firm Bernstein had projected a fair value between Rs 185-215 for Aditya Birla Lifestyle Brands, the demerged entity. The company will be left with a debt of Rs 700-800 crore now, which it aims to repay in next two to three years.
Motilal Oswal expects ABLBL to deliver 10 per cent revenue CAGR over FY25-28E, driven by acceleration in retail store additions in lifestyle brands, improvement in store productivity, and scale-up of emerging brands. It could generate cumulative free-cash flow of Rs 1,100 crore over FY25-28E, which should help ABLBL to become a net-cash company.
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“Driven by lower discounting, an improved channel mix and operating leverage benefits, we expect gross and Ebitda margin to expand 80 bps and 140 bps to 59 per cent and 16.6 per cent by FY28E. We ascribe a target price of Rs 190 per share, premised on 15 times FY27E EV/EBITDA for lifestyle brands and ~1x FY27E EV/sales for emerging brands,” it added with a ‘neutral’ rating.
The shares of Aditya Birla Lifestyle Brands Ltd India will trade under the scrip ID ENRIN and shall be listed under the ‘T’ Group of securities, which means that intraday buying and selling of the stock shall not be allowed and the stock shall trade with a upper circuit of 5 per cent for first ten trading sessions.
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This moment marks both a recognition of the progress we have made and a clear signal of the scale of opportunity that lies ahead. India stands at the cusp of a transformative growth phase, with consumption poised to be a primary driver, said Kumar Mangalam Birla, Chairman of Aditya Birla Group.
“ABLBL’s foundation is built on enduring strengths that set it apart in a competitive market. Our ambition is clear. To build India’s first portfolio of billion-dollar brands in fashion and lifestyle,” he said.
ABFRL had announced May 22 as the record date for the spin-off of the business entities in 1:1 ratio, implying one share of ABLBL for each share of ABFRL held. Only those shareholders who hold the stock as of the record date will be eligible to receive shares of the demerged entities. Investors buying the stock on or after the ex-demerger date will not be considered eligible.
The western wear legacy brands, growth brands like Reebok, American Eagle and Van Heusen innerwear will all be housed under the demerged entity, Aditya Birla Lifestyle Brands Ltd. The demerged entity will also be housing the Madura Fashion, Louis Philippe, Van Heusen, Allen Solly, Peter England.
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The currently listed entity, Aditya Birla Fashion and Retail will house brands like Pantaloons, the Ethnic Segment housed under TCNS Clothing, designer brands of Sabyasachi, Tarun Tahiliani, Masaba, Shantanu-Nikhil, Premium brands like Tasva, Jaypore, and luxury retail brands like The Collective and Galaries Lafayette, which is yet to be launched.
Aditya Birla Lifestyle Brands listing: Shares after demerger from Aditya Birla Fashion debut at Rs 167.75/ share
Aditya Birla Lifestyle Brands Limited (ABLBL) listed on BSE at a price of Rs 167.75. On the NSE, the scrip debuted at Rs 171 per share. ABFRL has demerged the company’s Madura Fashion & Lifestyle (MFL) business and transferred it to ABLBL. Van Heusen, Reebok, among other growth brands, will all be part of the Demerged entity. After the demerger, Rs 1,000 of the Rs 3,000 crore debt of ABF RL will be shifted.
Initially, as per the BSE notice released on June 10, the stock will be put in the T Group of Securities and will be part of the Trade-for-Trade segment for 10 trading days.
“Trading Members of the Exchange are hereby informed that effective from Monday June 23, 2025, the equity shares of Aditya Birla Lifestyle Brands Limited shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities,” BSE said in a notice dated June 19.
Notably, as per the demerger arrangement, ABFRL has demerged the company’s Madura Fashion & Lifestyle (MFL) business and transferred it into Aditya Birla Lifestyle Brands. Furthermore, investors who held the scrip of Aditya Birla Fashion as of the close of May 21 will be eligible to get the shares of Aditya Birla Lifestyle.
Furthermore, as part of the schema, ABFRL shareholders will be eligible to get one share of Aditya Birla Lifestyle for each share they own in Aditya Birla Fashion.
Van Heusen, Reebok, among other growth brands will all be part of the demerged entity, Aditya Birla Lifestyle Brands. Further other companies including Peter England, Allen Solly will also be housed under the new demerged entity.
What does the demerger signify for ABFRL?
The action is intended to release value by demerging the high-growth lifestyle and innerwear business under ABLBL from the ethnic and digital-first business of ABFRL. After the demerger, Rs 1,000 crore of the Rs 3,000 crore debt of ABFRL will be shifted to ABLBL, enabling cleansing of balance sheets for both the companies.
ABFRL will also raise Rs 2,500 crore within the next 12 months, backed by promoters, for future growth. The new structure will give each company independent capital paradigms and allow for more pointed strategic direction.