Shares of Aditya Birla Lifestyle Brands (ABLBL) made its stock market debut on Monday as a separate legal entity after its demerger from Aditya Birla Fashion and Retail Ltd (ABFRL). The stock kicked-off its maiden trading session at Rs 167.75 on Monday, lower than its demerged value of Rs 172.15 from ABFRL.
Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) demerged Aditya Birla Lifestyle Brands Ltd (ABLBL) from itself on May 22, 2025 and to stock was relisted as a separate entity on today. The spin-off led to the listing of two separate companies on the stock exchanges. ABLBL commanded a total market capitalization of close to Rs 20,500 crore.
However, the global brokerage firm Bernstein had projected a fair value between Rs 185-215 for Aditya Birla Lifestyle Brands, the demerged entity. The company will be left with a debt of Rs 700-800 crore now, which it aims to repay in next two to three years.
Motilal Oswal expects ABLBL to deliver 10 per cent revenue CAGR over FY25-28E, driven by acceleration in retail store additions in lifestyle brands, improvement in store productivity, and scale-up of emerging brands. It could generate cumulative free-cash flow of Rs 1,100 crore over FY25-28E, which should help ABLBL to become a net-cash company.
“Driven by lower discounting, an improved channel mix and operating leverage benefits, we expect gross and Ebitda margin to expand 80 bps and 140 bps to 59 per cent and 16.6 per cent by FY28E. We ascribe a target price of Rs 190 per share, premised on 15 times FY27E EV/EBITDA for lifestyle brands and ~1x FY27E EV/sales for emerging brands,” it added with a ‘neutral’ rating.
The shares of Aditya Birla Lifestyle Brands Ltd India will trade under the scrip ID ENRIN and shall be listed under the ‘T’ Group of securities, which means that intraday buying and selling of the stock shall not be allowed and the stock shall trade with a upper circuit of 5 per cent for first ten trading sessions.
This moment marks both a recognition of the progress we have made and a clear signal of the scale of opportunity that lies ahead. India stands at the cusp of a transformative growth phase, with consumption poised to be a primary driver, said Kumar Mangalam Birla, Chairman of Aditya Birla Group.
“ABLBL’s foundation is built on enduring strengths that set it apart in a competitive market. Our ambition is clear. To build India’s first portfolio of billion-dollar brands in fashion and lifestyle,” he said.
ABFRL had announced May 22 as the record date for the spin-off of the business entities in 1:1 ratio, implying one share of ABLBL for each share of ABFRL held. Only those shareholders who hold the stock as of the record date will be eligible to receive shares of the demerged entities. Investors buying the stock on or after the ex-demerger date will not be considered eligible.
The western wear legacy brands, growth brands like Reebok, American Eagle and Van Heusen innerwear will all be housed under the demerged entity, Aditya Birla Lifestyle Brands Ltd. The demerged entity will also be housing the Madura Fashion, Louis Philippe, Van Heusen, Allen Solly, Peter England.
The currently listed entity, Aditya Birla Fashion and Retail will house brands like Pantaloons, the Ethnic Segment housed under TCNS Clothing, designer brands of Sabyasachi, Tarun Tahiliani, Masaba, Shantanu-Nikhil, Premium brands like Tasva, Jaypore, and luxury retail brands like The Collective and Galaries Lafayette, which is yet to be launched.
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