Aditya Birla Fashion and Retail Limited (ABFRL) has officially confirmed the effective date of its Scheme of Arrangement with Aditya Birla Lifestyle Brands Limited (ABLBL). The Scheme pertains to the demerger of ABFRL and its restructuring process, aimed at streamlining operations and creating distinct brand identities. The announcement of the effective date follows the successful filing of the certified copy of the Order passed by the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, with the Registrar of Companies in Mumbai.

Effective Date and Appointed Date

As per the announcement, the effective date for the Scheme is confirmed as May 1, 2025, marking the first day of the month following the fulfillment of all conditions precedent under the Scheme. The appointed date for the Scheme, as specified in the document, is April 1, 2024, which signifies the date on which the restructuring process commenced for both ABFRL and ABLBL.

Key Developments and Filing Process

The filing with the Registrar of Companies concludes the last step for both companies to proceed with the Scheme's effectiveness. This development is a significant step in the demerger process of ABFRL and ABLBL, which will see a clearer focus on their respective business operations. The Scheme, which was earlier intimated on March 27, 2025, and April 22, 2025, has now met all regulatory requirements and conditions.

Implications for Shareholders and Creditors

For shareholders and creditors, the Scheme of Arrangement marks an important restructuring, intended to enhance the operational efficiencies and strategic focus of both ABFRL and ABLBL. The Scheme will impact their holdings and the overall corporate structure of both companies, and further updates will follow regarding the changes to be made in the shareholding structure.

About Aditya Birla Fashion and Retail Limited

Aditya Birla Fashion and Retail Limited (ABFRL) is a leading fashion and retail company in India. It operates a number of popular fashion brands and stores, catering to a broad range of consumer segments. ABFRL’s portfolio includes leading brands such as Pantaloons, Van Heusen, Peter England, Allen Solly, Jaypore, and ABFRL’s fashion ventures in the lifestyle space. The company has a widespread presence across India, with a robust supply chain and retail network.

Looking Ahead

With the effective date of the Scheme of Arrangement set for May 1, 2025, ABFRL and ABLBL are poised to move forward with their strategic vision. The demerger process will allow both companies to pursue their respective business goals more efficiently, with a clear focus on their core brand offerings.

Anil Malik, the President & Company Secretary of ABFRL, also reiterated the company's commitment to ensuring a smooth transition for all stakeholders involved in the process.

Conclusion

The announcement of the effective date of the Scheme of Arrangement is a crucial development for Aditya Birla Fashion and Retail Limited and Aditya Birla Lifestyle Brands Limited. It represents the finalization of a significant restructuring that will likely lead to better alignment and growth opportunities for both companies. Investors, shareholders, and creditors can expect further details and updates as the process unfolds post the effective date.

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