ABFRL to sell entire 6% stake in ABFRL for Rs 600 crore

Flipkart plans to sell its entire 6 per cent stake in Aditya Birla Fashion and Retail (ABFRL). Expected to be finalized today, the deal is estimated at approximately Rs 600 crore.

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This development follows closely on the heels of ABFRL’s strategic decision two weeks ago to demerge its lifestyle business into a new entity, Aditya Birla Lifestyle Brand (ABLBL).

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This newly formed company will encompass key brands from the Madura Fashion portfolio, including popular names like Louis Philippe, Van Heusen, Allen Solly, and Peter England.

Following the demerger announcement, brokerage firm Nuvama Institutional Equities downgraded ABFRL’s rating from a ‘Buy’ to a ‘Hold,’ adjusting its target price to $10.07 (Rs 84).

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In Q4, FY25, ABFRL reported a consolidated net loss of Rs 23.55 crore as compared to the Rs 266.36 crore loss recorded in the same period last year. The company’s revenue from operations increased to Rs 1,719.48 crore from Rs 1,575.12 crore in the corresponding quarter of the previous year.

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As ABFRL undergoes these significant structural changes and navigates market reactions, investor sentiment is expected to remain closely tied to the upcoming listing of ABLBL and the outcome of Flipkart’s strategic exit.

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