Aditya Birla Fashion acquires 51% in Styleverse Lifestyle; shares slip 2%

Shares of Aditya Birla Fashion and Retail slipped 2 percent in trade on October 23 after its subsidiary Aditya Birla Digital Fashion Ventures entered into a shareholder agreement and a share subscription agreement for buying 51 percent stake in Styleverse Lifestyle for Rs 155 crore.

As of 10.40am, the Aditya Birla Fashion stock was trading at Rs 225.05 on the National Stock Exchange (NSE), lower by 1.9 percent in a muted domestic market.

Styleverse Lifestyle is engaged in manufacturing and retailing of apparels under the brands The Indian Garage Co, Freehand, and Hardsoda. “The business was earlier operating under a partnership firm The Indian Garage Co and was transferred into SLPL through Business transfer arrangement,” said ABFRL in a statement.

Shareholding, stock price movement

Compared to the Nifty 50’s one-year run of 11 percent, Aditya Birla Fashion and Retail shares slipped 32.4 percent in the same time period. Over the past six months, the stock has traded flat, rising 0.65 percent, while Nifty 50 jumped 9.74 percent.

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As of the quarter ended September, promoters maintained their 55.5 percent in the company over quarters. FIIs and DIIs owned 14 percent and 17 percent respectively, while the public had around 13 percent.

In the April-June quarter, the company reported a quarterly net loss at Rs 161.62 crore, against a profit of Rs 94.44 crore in the corresponding quarter in the previous fiscal year.

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