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Shares of the Aditya Birla Group companies - Pantaloons Fashion & Retail and Aditya Birla Nuvo (ABNL) have rallied by up to 20% after the group announced a consolidation plan of its garments business into a single entity.
The Kumar Mangalam Birla-controlled group on Sunday announced a plan to merge its Aditya Birla Nuvo Ltd (ABNL)-operated fashion retailing business with Pantaloons Fashion & Retail. This will create India’s largest branded apparel player, valued at Rs 12,000 crore. CLICK HERE TO READ FULL STORY
According to the plan, Madura Fashion (the branded apparel retail division) and Madura Lifestyle (the luxury branded apparel retailing arm of ABNL) will be demerged into Pantaloons Fashions, a listed subsidiary of the group.
Aditya Birla Nuvo shareholders to get 26 new equity shares of Pantaloons for every 5 shares held, while Madura Garments shareholders get 7 new equity shares of Pantaloons for every 500 shares held.
Among the individual stocks, Pantaloons Fashion & Retail has locked in upper circuit of 20% at Rs 138 on the NSE. A combined 173,949 shares already changed hands and there were pending buy orders for 120,509 shares on the NSE and BSE at 0939 hours.
Shares of Aditya Birla Nuvo were up 7% at Rs 1,675, after hitting high of Rs 1,711 on the NSE in early morning trade. The trading volumes on the counter jumped more than two-fold with a combined 243,932 shares changed hands on both the exchanges.
The Kumar Mangalam Birla-controlled group on Sunday announced a plan to merge its Aditya Birla Nuvo Ltd (ABNL)-operated fashion retailing business with Pantaloons Fashion & Retail. This will create India’s largest branded apparel player, valued at Rs 12,000 crore. CLICK HERE TO READ FULL STORY
According to the plan, Madura Fashion (the branded apparel retail division) and Madura Lifestyle (the luxury branded apparel retailing arm of ABNL) will be demerged into Pantaloons Fashions, a listed subsidiary of the group.
Aditya Birla Nuvo shareholders to get 26 new equity shares of Pantaloons for every 5 shares held, while Madura Garments shareholders get 7 new equity shares of Pantaloons for every 500 shares held.
Among the individual stocks, Pantaloons Fashion & Retail has locked in upper circuit of 20% at Rs 138 on the NSE. A combined 173,949 shares already changed hands and there were pending buy orders for 120,509 shares on the NSE and BSE at 0939 hours.
Shares of Aditya Birla Nuvo were up 7% at Rs 1,675, after hitting high of Rs 1,711 on the NSE in early morning trade. The trading volumes on the counter jumped more than two-fold with a combined 243,932 shares changed hands on both the exchanges.
