The stock will be placed in the list of T Group of Securities and will be in the Trade-for-Trade segment for 10 trading days, a BSE notice issued today said.
Under the scheme of arrangement, ABFRL has demerged its Madura Fashion & Lifestyle (MFL) business and vested it into Aditya Birla Lifestyle Brands.
The shareholders of ABFRL will get one share of ABLBL for every one share in ABFRL in addition to their existing shareholding in ABFRL.
The business assets and liabilities will be split between the two companies per the prescribed regulatory provisions. In line with this, the overall ABFRL borrowing, which is estimated to be Rs 3,000 crore as of March 31, 2024, will be split between the two companies.
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The estimated debt to be transferred to ABLBL will be Rs 1,000 crore, and the balance will continue to stay with ABFRL. The demerger is expected to unlock value for the shareholders of ABFRL as each of the listed entities will have their distinct capital structures, independent growth trajectories and value creation opportunities, a company filing said.ABFRL plans to raise Rs 2,500 crore equity capital within 12 months of demerger with promoter participation.
Also read: HDB Financial’s Rs 12,500 crore IPO to open on June 25, price band announcement later
Before the scheme, the paid-up equity capital of ABLBL was Rs 5 lakh, consisting of 50,000 equity shares of Face Value of Rs 10/- each, which shall be cancelled.
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