Aditya Birla Fashion Retail’s (ABFRL) share price is in focus as Flipkart is likely to sell out its entire 6% stake in the company. Flipkart is expected to sell the stake through a block deal of around Rs 600 crore, as per reports on CNBC Awaaz.
The floor price for the transaction has been fixed at Rs 80 per share, which is a discount of almost 7% to ABFRL’s current market price. The deal is likely to be executed on June 04. The broker transacting the deal is Goldman Sachs, according to CNBC Awaaz.
Aditya Birla Fashion Retail demerges lifestyle business
Two weeks ago, ABFRL spun off its lifestyle business into a new company called Aditya Birla Lifestyle Brand. (ABLBL). The demerged entity houses well-known labels like Louis Philippe, Van Heusen, Allen Solly, and Peter England – all currently part of Madura Fashion. It is expected that ABLBL will list on the bourses by the end of June 2025.
Post the demerger, brokerage house Nuvama Institutional Equities downgraded ABFRL to ‘Hold’ from ‘Buy’, with a revised target price of Rs 84. It understands that the stock is fairly valued post-demerger and “core portfolio growth is still lagging.”
Aditya Birla Fashion Retail Q4 results
ABFRL’s consolidated net loss narrowed to Rs 23.55 crore in the fourth quarter of FY25. The company posted a net loss of Rs 266.36 crore during the same quarter a year ago, according to a regulatory filing. Its revenue from operations rose to Rs 1,719.48 for Q4 FY25. It was at Rs 1,575.12 crore in the same period a year ago.
Aditya Birla Fashion stock performance
The share price of Aditya Birla Fashion has fallen 1.8% in the last five trading days. The stock has risen by 1.7% in the previous one month. However, the stock has declined by 5.87% in the last six months. It has given a return of 1.8% in the past one year. The adjustment for demerger was not taken into account.