ABFRL board nod to demerge Madura Fashion & Lifestyle biz

NEW DELHI: Aditya Birla Fashion and Retail (ABFRL) on Friday said its board has approved a proposal to demerge Madura Fashion & Lifestyle business, while it plans to raise Rs 2,500 crore equity capital within 12 months of demerger with promoter participation.
Earlier this month, the company announced plans to demerge its fast fashion and retail business Madura Fashion & Lifestyle into a separate listed entity to unlock opportunities for value creation.The board authorised the management to evaluate the vertical demerger.
"The demerger will be implemented through an NCLT scheme of arrangement, and upon its completion, all shareholders of ABFRL will have identical shareholdings in both the companies," the company said in a statement.