Why Aditya Birla Fashion Share Price is Falling: If you saw the Aditya Birla Fashion share price fall suddenly by 67% in May 2025 and got shocked, you are not alone. Many small investors, retail traders, and even some experienced people were confused. So, let me explain in the most simple and practical language, like a common person explaining to another common person — without any technical jargons.
On May 22, 2025, the share price of Aditya Birla Fashion and Retail Limited (ABFRL) suddenly crashed by around 67% and came down to Rs. 88.80.
But wait — this is not because the company is in loss or going bankrupt. The reason is something else:
Real Reason: Demerger of Madura Fashion & Lifestyle Business
ABFRL has demerged its Madura Fashion & Lifestyle unit (which includes brands like Louis Philippe, Van Heusen, Allen Solly, Peter England) into a separate company.
This means:
- ABFRL is now only focusing on its other segments (like Pantaloons, ethnic wear, etc.).
- Madura Fashion will now run as a new listed company.
So, this price drop is because of technical adjustment — not poor performance.
Was My Investment Lost Then?
No. If you held ABFRL shares before the record date (May 22), you will get shares of the new Madura company separately.
So your total value might look less in ABFRL, but you will be compensated with new shares.
Just like if you split a pizza into two plates — the total food is same, but on two different plates.
| Year | Price (Rs.) | Yearly Change (%) | High (Rs.) | Low (Rs.) |
|---|---|---|---|---|
| 2025 | 258.39 (Before Split) | -8.3% | 290.89 | 231.30 |
| 2024 | 281.85 | +26.0% | 364.40 | 198.75 |
| 2023 | 223.70 | -22.2% | 290.00 | 184.40 |
| 2022 | 287.50 | +5.6% | 359.50 | 221.30 |
| 2021 | 272.25 | +64.4% | 310.00 | 148.50 |
| 2020 | 165.60 | -28.5% | 281.42 | 95.61 |
Demerger Details in Simple Words
- Record Date: 22 May 2025
- Reason: To create focused businesses and unlock shareholder value
- What You Get: Shares of the new Madura company
- Share Price Fall: Due to adjustment, not actual value loss
If I Invested Rs. 10,000 in 2013?
If you invested Rs. 10,000 in ABFRL in 2013:
- By 2025, that would be worth approx. Rs. 28,823 (before demerger)
- Return: 188.2% in 12 years
But in last 5 years: Return was -5.1%
FAQs (Real Doubts People Have)
A. Because the Madura business was separated. Share price adjusted accordingly. You didn’t lose money — it’s just split in two companies now.
A. Yes. If you held ABFRL shares on record date (22 May), you will get shares in the new company.
Q. Is this bad for investors?
A. Not really. Many times demergers help both businesses to grow better.
Q. Should I sell or hold now?
A. That depends on your financial goal. But don’t panic-sell just because the price looks down. Understand the reason first.
A. Usually within few weeks from record date. Check official announcement.
Q. Is ABFRL safe to invest after this?
A. After the demerger, ABFRL will focus more on ethnic, retail, and other verticals. Company is backed by Aditya Birla Group, which is financially strong.
Q. Why do demergers happen?
A. To create two focused companies, increase transparency, and unlock value for shareholders.
A. Yes, technically. But value comes back via new company shares.
Final Thoughts
Don’t panic. Let the dust settle before you move. Patience is always the key to profit in share market. This is not a scam or disaster. It’s a technical adjustment due to demerger. Just wait for your new shares, check updates from ABFRL, and if you still have doubts, consult your financial advisor.
Stay calm. Stay invested smartly.
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