Aditya Birla Nuvo in Spotlight After Spinoff of Apparel Business

Aditya Birla Nuvo was in spotlight today after shares began trading again in the regular market following the spinoff of the branded apparel business. During the first one hour of trading, the price discovery session took place and after that shares started trading in the cash segment.

In May last year, Aditya Birla Nuvo announced merger of all its branded apparel businesses into one entity, Aditya Birla Fashion and Retail Ltd. Under the scheme of arrangement, the apparel businesses of group holding company Aditya Birla Nuvo and of another group firm Madura Garments Lifestyle Retail would be demerged into listed firm Pantaloons Fashion & Retail. 

Pantaloons Fashion & Retail, which was acquired by Aditya Birla Nuvo, has been renamed as Aditya Birla Fashion and Retail. 

As per the scheme of arrangement, shareholders of Aditya Birla Nuvo will get 26 shares of Aditya Birla Fashion and Retail for five shares held in Aditya Birla Nuvo.

Post this development, shares of Aditya Birla Nuvo ended 7.5 per cent lower at Rs 883 and the shares of Pantaloon Fashion and Retail ended 5.6 per cent higher at Rs 217.40.