Aditya Birla Lifestyle shares list at Rs 167.75 post demerger, Motilal gives Rs 190 target price
Synopsis Aditya Birla Lifestyle Brands Limited (ABLBL) commenced trading on the BSE and NSE following its demerger from Aditya Birla Fashion and Retail Limited (ABFRL). Motilal Oswal initiated coverage with a Neutral rating, anticipating revenue growth driven by retail expansion and emerging brands. Shares of Aditya Birla Lifestyle Brands Limited (ABLBL) listed on the BSE and NSE today following its demerger from Aditya Birla Fashion and Retail Limited (ABFRL). On the BSE, the stock debuted at Rs 167.75, while on the NSE, it listed at Rs 167.
ADVERTISEMENT Based on the share price of the demerged ABFRL immediately after the demerger, the market had ascribed a value of Rs 171 per share to ABLBL, implying a market capitalisation of about Rs 21,000 crore.
Domestic brokerage firm Motilal Oswal has initiated coverage on ABLBL with a Neutral rating and a target price of Rs 190.
"We expect ABLBL to deliver ~10% revenue CAGR over FY25–28E, driven by an acceleration in retail store additions in lifestyle brands (~700 net store additions over FY25–28E), improvement in store productivity (~3.5% SPSF CAGR), and scale-up of emerging brands," Motilal said.ABLBL was demerged from Aditya Birla Fashion and Retail (ABFRL) in May 2025 and comprises four industry-leading lifestyle brands—Louis Philippe, Van Heusen, Allen Solly, and Peter England—as well as emerging brands such as Van Heusen Innerwear, Reebok, and American Eagle.The company has a retail presence of over 3,250 stores, spanning approximately 4.6 million sq. ft. of retail space, and enjoys a wide distribution across large format stores (LFS), multi-brand outlets (MBOs), and online channels. ABLBL follows an asset-light model, with around 70% of its stores operated by franchisees.
ADVERTISEMENT As part of the demerger, shareholders of ABFRL received one share of ABLBL for every one share held in ABFRL, in addition to their existing ABFRL shareholding.The business assets and liabilities have been split between the two entities in accordance with regulatory guidelines. As per the arrangement, ABFRL's total borrowings—estimated at Rs 3,000 crore as of March 31, 2024—will be apportioned between the two companies. An estimated Rs 1,000 crore of debt will be transferred to ABLBL, while the remaining Rs 2,000 crore will stay with ABFRL.
ADVERTISEMENT The demerger is seen as a value unlocking exercise for ABFRL shareholders, as each listed entity will have its own distinct capital structure, independent growth strategy, and value creation potential.ABFRL also plans to raise Rs 2,500 crore in equity capital within 12 months of the demerger, with promoter participation expected.
ADVERTISEMENT Prior to the demerger, the paid-up equity capital of ABLBL stood at Rs 5 lakh, consisting of 50,000 equity shares of face value Rs 10 each, which will now be cancelled under the scheme.
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