New Delhi, Apr 2 (PTI) Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) on Tuesday jumped 17 per cent after the company announced demerger of its fast fashion and retail business Madura Fashion & Lifestyle into a separate listed entity aiming to unlock opportunities for value creation.

The stock climbed 16.86 per cent to Rs 247.40 on the BSE.

Also Read | International Fact-Checking Day 2024 Date, Origin, History and Significance: Know About the Important Observance Focused on Countering the Growing Misinformation in the World.

At the NSE, it jumped 16.93 per cent to Rs 247.50.

The ABFRL board at its meeting held on Monday authorised the management of the company to evaluate the vertical demerger of Madura Fashion & Lifestyle business, according to a company statement.

Also Read | New Financial Year 2024-25 Starts on April 1: Here’s Why Banks in India Are Shut on the First Day of April Month.

"The proposed demerger will enable the creation of two separately listed companies as independent growth engines with distinct capital structures and parallel value creation opportunities," it said.

Moreover, after the completion of the proposed demerger, ABFRL "will raise growth capital within 12 months" to strengthen its balance sheet, and pursue the large growth opportunity, it added.

The Madura Fashion & Lifestyle (MFL) business consists of four fast fashion brands - Louis Philippe, Van Heusen, Allen Solly and Peter England - along with casual wear brands viz. American Eagle and Forever 21.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)