ABFRL Demerger: Why is Aditya Birla Fashion share price crashing 66% as spin-off kicks in?
Aditya Birla Fashion (ABFRL) share price crashed over 66 per cent in Thursday’s trading session as May 22 marks the record date for the company’s demerger of its Madura Fashion & Lifestyle business into a separate listed entity.
The fall in the share price is mainly attributed to the demerger ratio, which states that ABFRL shareholders will get one equity share of Aditya Birla Lifestyle Brands Ltd (ABLBL) for each equity share they own in ABFRL.
At 11:10 am, ABFRL share price opened at ₹97 on Thursday after the demerger, however, touched an intraday low to ₹88.80 apiece. The stock had previously closed at ₹269.15 on Wednesday.
(This is a developing story)
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