Market News
2 min read | Updated on May 13, 2024, 13:11 IST
SUMMARY
In a stock exchange filing, ABFRL informed that the company has infused ₹100 crore into its subsidiary Indivinity Clothing Retail Private Limited. With this the company’s stake in the subsidiary will increase from 80% to 85.54%.
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Aditya Birla Fashion and Retail shares drop 3% after acquiring more stake in clothing retail arm
Shares of the Aditya Birla Group company dropped as much as 3.54% to a low of ₹247.75 apiece on the NSE in morning deals. However, the stock recovered some of the losses to trade at ₹253.5 apiece, down 1.3%, on the NSE at 12:30 pm.
In a stock exchange filing, ABFRL informed that the company has infused ₹100 crore into its subsidiary Indivinity Clothing Retail Private Limited. With this the company’s stake in the subsidiary will increase from 80% to 85.54%.
“Indivinity Clothing Retail Private Limited (“ICRPL”), a subsidiary of the Company, has allotted 2,26,09,088 equity shares for a total consideration aggregating to ₹100 crore to the company on Thursday, May 9, 2024,” ABFRL said in a filing to bourses.
ICRPL is engaged in the apparel and accessories vertical and had a revenue of ₹ 49.29 crores in FY2022-23.
Incorporated in on March 3, 2021, the company runs bespoke ethnic wear business selling occasion and ceremonial contemporary apparel for men and women under the brand name “Tasva”.
The ABFRL board last month approved the vertical demerger of Madura Fashion and Lifestyle business from the company into a new company named as Aditya Birla Lifestyle Brands Ltd (ABLBL), to be listed separately on completion of the demerger.
The new business will host lifestyle brands like Louis Phillippe, Van Heusen, Allen Solly and Peter England; casual wear brands like American Eagle and Forever 21 as well as Sportswear brand Reebok and innerwear business under Van Heusen brand.
The remaining business such as value retail, ethnic portfolio luxury platform and digital brands will be owned by ABFRL.
ABFRL shares have risen around 10% since the announcement of the demerger proposal. The stock has gained around 24% in the past year.
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