To reflect the enhanced scope of the operations post consolidation, the Board of PFRL has approved PFRL to be renamed as Aditya Birla Fashion & Retail Limited (ABFRL).
Aditya Birla Group chairman Kumar Mangalam Birla, said, "This consolidation will create India's largest pure play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats. This move brings India's number one branded menswear and womenswear players together."
"The consolidation will unlock value for the shareholders by giving them an opportunity to participate in the promising fashion space directly through ABFRL," Birla said.
The businesses that will be demerged from the respective companies into PFRL are Madura Fashion, a branded apparel retailing division of ABNL, and Madura Lifestyle, a luxury branded apparel retailing division of MGLRCL, the statement said.
The Boards have approved a swap ratio recommended by the independent valuers.
Accordingly, shareholders of ABNL will get 26 new equity shares of PFRL for every 5 equity shares held in ABNL pursuant to the demerger of Madura Fashion. Shareholders of MGLRCL will get 7 new equity shares of PFRL for every 500 equity shares held in MGLRCL pursuant to the demerger of Madura Lifestyle, and Preference shareholder of MGLRCL will get 1 new equity share of PFRL.
On the completion of the transaction and issuance of new shares, the existing base of 9.28 Crore equity shares of PFRL will go up to 77.28 Crore equity shares. The new shares will be issued directly to the respective shareholders of the transferor companies. An existing shareholder holding 100 equity shares in ABNL will continue to hold 100 equity shares of ABNL and in addition, will get 520 equity shares of PFRL.
The transaction is subject to the necessary statutory and regulatory approvals including approvals of the respective High Courts, the Stock Exchanges, SEBI, the respective Shareholders and lenders/creditors of each of the companies. The appointed date of the scheme will be 1st April 2015. The transaction is expected to be consummated in the next 6 to 9 months. (SH)
Fibre2fashion News Desk - India
Textiles | On 25th Apr 2017
Greater Manchester is witnessing a boom in textiles industry with 77...
Apparel/Garments | On 25th Apr 2017
International buyers are not paying enough for apparel and garments...
Textiles | On 24th Apr 2017
Increase in prices across polymers and polyester chain has...
Indo Count Retail Ventures
Today, there is no other emerging market as India, "we make in India and...
‘Sustainable fashion is trending upwards, slowly but surely, as people...
Mag Solvics Pvt. Ltd
ITME 2016 exploited our full strength like never before
Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Schlegel und Partner
Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...
Bani Batra’s couture wedding collection is inspired by traditional Indian...
Rupa Sood and Sharan Apparao
Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...
Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...