If you saw Aditya Birla Fashion and Retail Ltd (ABFRL) shares falling by 67% recently and panicked—don’t worry, it’s not as bad as it looks.
This big drop happened because of a planned business split, not because the company is in trouble. ABFRL has separated its clothing business into two parts. One part (ABFRL) will now handle brands like Pantaloons, Sabyasachi, and Masaba, and will focus more on luxury and ethnic fashion. The other part, called Aditya Birla Lifestyle Brands Ltd (ABLBL), will manage popular names like Van Heusen, Allen Solly, Peter England, and Reebok.
Because of this split, ABFRL’s share price dropped to reflect that it no longer includes the lifestyle brands. But here’s the good news: for every share of ABFRL you already own, you’ll get one share of the new ABLBL company too. So you’re not losing value—your investment is just being split into two pieces.
Experts believe both companies have strong growth potential. The new ABLBL stock is expected to list by June 2025.
So, no need to panic. The 67% drop looks scary on the surface, but it’s just a technical adjustment, not a crisis.