In a dramatic market move that surprised many retail investors, Aditya Birla Fashion and Retail (ABFRL) shares plummeted by over 66% on May 22, 2025. But this massive drop isn’t a cause for panic — it’s a technical adjustment following the demerger of its lifestyle brands business into a new company.
Why Did ABFRL Shares Drop 66%?
On Thursday, ABFRL turned ex-demerger, meaning its stock price was adjusted to reflect the removal of its lifestyle brands segment. The fall from ₹268.95 to ₹89.90 on the NSE was expected and not a result of negative market sentiment.
🟢 Key Reason: Demerger of its lifestyle vertical into a new listed company — Aditya Birla Lifestyle Brands Ltd (ABLBL).
What Was the Record Date?
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Ex-date: May 22, 2025
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Record date: May 22, 2025
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Share entitlement: Investors will receive 1 share of ABLBL for every 1 share held in ABFRL (1:1 ratio)
What Will ABFRL Do Now?
Even after the demerger, ABFRL remains a diversified retail powerhouse. Here’s what stays under its umbrella:
🛒 Value Retail
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Pantaloons
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Style Up
👗 Ethnic Wear
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TCNS Clothing
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Designer partnerships (such as Sabyasachi, Tarun Tahiliani)
🏷️ Premium & Luxury Fashion
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The Collective
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Galeries Lafayette
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International fashion brands
📲 Digital-First Brands
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Managed under the TMRW platform, focusing on Gen-Z consumers
What Will ABLBL Handle?
The newly formed Aditya Birla Lifestyle Brands Ltd (ABLBL) will become home to some of India’s most iconic fashion labels:
🧥 Powerhouse Fashion Brands
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Louis Philippe
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Van Heusen
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Allen Solly
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Peter England
🌍 International Brands
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American Eagle
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Forever 21
🏃♂️ Sports & Innerwear
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Reebok (India franchise)
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Van Heusen Innerwear
What Should Investors Do?
The stock price fall is purely technical and already factored into the valuation. Investors will soon hold two separate stocks:
✅ ABFRL (core retail business)
✅ ABLBL (premium fashion powerhouse)
This strategic demerger aims to unlock value and allow each business to focus independently on its growth strategy.
Final Thoughts
The 66% fall in Aditya Birla Fashion’s stock isn’t a red flag — it’s part of a well-planned corporate restructuring. For long-term investors, this demerger could prove to be a smart move as both companies now have sharper focus and better growth potential.
