The shares of Aditya Birla Fashion are witnessing a tremendous rise in Tuesday’s trading session. The reason for the rise in the company’s shares is the demerger plan of Aditya Birla Fashion. The company had announced yesterday that they will list Madura Fashion and Lifestyle business separately on the stock exchange.
Shares rose 15 percent
Till the time of writing the news, the shares of Aditya Birla Fashion have increased by 15 percent. The stock touched an all-time high of Rs 243.45 per share on BSE. The stock witnessed heavy volumes in the morning trading session and till 10:30 am, 6 crore shares were traded. At the same time, the average for the last one week is 30 lakh shares.
The company gave information to the stock market
In the information given by the company in the stock exchange on Monday, it was said that the company wants to list its unit Madura Fashion and Lifestyle in the market as a separate company. Ashish Dixit, MD, Aditya Birla Fashion & Retail Ltd, said the restructuring will help focus both the businesses with a differentiated strategy. Each of these businesses has always been operated with a different CEO.
Business of both companies will be separate
Madura Fashion & Lifestyle owns Louis Philippe, Van Heusen, Allen Solly and Peter England as well as casual wear brands American Eagle and Forever 21. Along with this, the company also has sports brand Rewalk. After the demerger, Aditya Birla Fashion will have value retail, traditional apparel, luxury and digital brands.
Aditya Birla Group Chairman Kumar Mangalam Birla said that this decision has been taken to make pro-sale easier and to capitalize on the existing opportunities, leading to value creation. This strategic move will greatly benefit the long-term parties.
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