Aditya Birla Fashion slips 9%, hits 52-week low after block deal on NSE

Business Standard

3 days ago

Aditya Birla Fashion and Retail share price today
Aditya Birla Fashion block deal: Aditya Birla Fashion and Retail (ABFRL) shares hit a 52-week low of ₹78.25 today, falling 9 per cent on the National Stock Exchange (NSE) in Wednesday's intraday trade, after a huge block deal was executed on the counter.
Till 09:19 AM, 163.98 million equity shares, representing 13.44 per cent of the total equity of ABFRL, had together changed hands on the NSE (132.9 million shares) and BSE (31.08 million shares), exchange data shows. The names of the buyers and sellers, however, could not be ascertained immediately.
At the time of writing this report, the stock was quoting 8 per cent lower at ₹79.19 on the NSE.
Flipkart likely seller in ABFRL block deal
According to reports, Walmart-owned Flipkart investments was considering selling its entire 6 per cent equity stake in ABFRL via secondary equity sale. Flipkart, reports said, was planning to sell around 73 million shares via bulk sale at ₹79.5 per share, which was a 7.6-per cent discount to the stock's closing share price of ₹86 per share on Tuesday.
As on March 31, 2025, Flipkart Investments Private Limited held 73.17 million shares or 6 per cent stake in ABFRL, the shareholding pattern data shows.
ABFRL Demerger
On May 22, 2025, ABFRL turned ex-date for its demerger with Aditya Birla Lifestyle Brands (ABLBL).
Shareholders of ABFRL were allotted shares of ABLBL in a 1:1 ratio. This implies that for every one ABFRL share held by shareholders, they received one share of ABLBL. ABLBL is expected to list by the end of June 2025.
The demerger follows a strategic decision where fashion player ABFRL demerged its business into two entities in a bid to have stronger growth trajectories in their carved-out markets.
The new entity ABLBL now holds some of India's best-known brands in its kitty. Lifestyle brands – Louis Philippe, Van Heusen, Peter England, Allen Solly, Simon Carter; Sportswear – Reebok Van Heusen innerwear and Youth western wear – American Eagle.
The post-demerger entity of ABFRL has a powerful vision for meeting India's need for smart and trendy apparel. It covers a wide selection of options, ranging all the way from mass appeal and digital-first brands to luxury clothing brands, luxury offerings and designer couture. ALSO READ | YES Bank rises 2% as board okays fundraise of up to ₹16,000 crore; details
ABFRL Growth Outlook
With a leading presence across multiple high-growth platforms, the demerged ABFRL is well placed to emerge as a strong diversified player in the sector. With over ₹ 2,350 crore of gross cash at consolidated level following the recent capital raise, the company is all set to pursue aggressive growth to triple in scale and double in profitability over the next 5 years.
With a diverse portfolio of strong brands and access to free cash flow post demerger, the business is poised to pursue an aggressive growth trajectory going forward for ABLBL. It is expected to double in scale with improved profitability over the next five years, emerging as the largest branded fashion play in the country.
About Aditya Birla Fashion and Retail
Aditya Birla Fashion and Retail Limited (ABFRL), part of the Aditya Birla Group, is India's leading fashion powerhouse, offering a distinguished portfolio of renowned brands and retail formats, catering to multiple high-growth segments. As of March 31, 2025, the company has presence across 1,167 stores, spanning 7.3 million square feet retail space.
ABFRL's portfolio includes Pantaloons, one of India's most loved fashion destinations, and Style Up, a growing value retail format. The company also operates The Collective, who commands a dominant position as one of the country's most influential multi-brand luxury retailers, with exclusive long-term tie-ups with global fashion brands including Ralph Lauren, Hackett London, Ted Baker and Fred Perry. ABFRL has also partnered with Paris based Galeries Lafayette to introduce a high-end luxury destination in India.
ABFRL is a market leader in branded ethnic wear, its portfolio includes Jaypore, Tasva and TCNS brands and it has forged strategic partnerships with India's top designers such as Shantnu & Nikhil, Tarun Tahiliani, Sabyasachi, and House of Masaba. Recently, the Company further expanded its ethnic wear leadership with the integration of TCNS brands, home to leading women's brands W, Aurelia, Wishful, Elleven and Folksong