Aditya Birla Fashion and Retail has divided into two publicly listed firms in order to pursue stronger development pathways in their respective specialist markets. Shares of Aditya Birla Fashion and Retail Ltd. (ABFRL) ended at Rs 99 on the NSE on Thursday after the firm separated Aditya Birla Lifestyle Brands Ltd. (ABLBL) from itself. The spin-off will result in the listing of two separate firms on the market, since the demerged businesses are required to be listed on both the BSE and the National Stock market by the end of next month.

Following the demerger, the price adjustment caused Aditya Birla Fashion and Retail’s shares to fall 65%. The share price was Rs 93.90 a share at the time this report was produced. According to Aditya Birla Fashion & Retail shares, the company’s stock price has dropped by about 63% from its previous closing of Rs 268.95 on the NSE.

This is because the value of the new businesses is reduced by the stock prices. The market determines the fair value of Aditya Birla Fashion & Retail, and each listing will reflect the value of the resultant business, Aditya Birla Lifestyle Brands.

Earlier this month, ABFRL announced that May 22 will be the record date for the 1:1 spin-off of the business entities. This means that for every share of ABFRL owned, one share of ABLBL would be issued. Only stockholders who held shares on the record date will be entitled to purchase shares in the demerged corporations. Investors who buy stock on or after the ex-demerger date will not be eligible.

On Wednesday, May 21, all of ABFRL’s existing contracts came to an end. Today, Thursday, May 22, new contracts were announced. The NSE said in a circular that 2,600 equity shares make up the lot size of the new F&O contract. On Thursday, May 22, at 10 a.m., trading in news F&O contracts and the publicly traded firm ABRFL will begin.