Aditya Birla Lifestyle Shares List at ₹167.75 – Motilal Oswal Gives ₹190 Target Price
Aditya Birla Lifestyle Brands Limited (ABLBL) officially debuted on the BSE and NSE after its much-anticipated demerger from Aditya Birla Fashion and Retail Ltd (ABFRL). The stock listed at ₹167.75 on the BSE and ₹167 on the NSE on June 2025. This marks a significant development for the Aditya Birla Group’s retail business strategy, and investors are keenly watching ABLBL's next moves.
📈 ABLBL Share Price Listing Highlights
Based on post-demerger pricing of ABFRL shares, the market had already ascribed an indicative value of around ₹171 per ABLBL share. This implies a market capitalization of approximately ₹21,000 crore for the newly listed company.
Domestic brokerage firm Motilal Oswal initiated coverage on ABLBL with a Neutral rating and a target price of ₹190. According to the brokerage, the company’s strong brand portfolio, store network expansion, and asset-light model make it an interesting long-term play.
🚀 Motilal Oswal: Growth Forecast & Strategy
Motilal Oswal expects ABLBL to register a ~10% revenue CAGR over FY25–FY28. The primary growth drivers identified include:
- 🔹 Addition of 700+ retail stores during FY25–FY28
- 🔹 3.5% CAGR improvement in sales per square foot (SPSF)
- 🔹 Scaling of emerging lifestyle and innerwear brands
This positive outlook reflects confidence in India’s expanding consumer fashion market and the company’s operational strengths.
🛍️ What Is ABLBL? Brand Portfolio & Reach
Aditya Birla Lifestyle Brands comprises a blend of legacy and emerging retail fashion brands. The company operates:
- 👔 Legacy Brands: Louis Philippe, Van Heusen, Allen Solly, and Peter England
- 🩳 Emerging Brands: Van Heusen Innerwear, Reebok (licensed), and American Eagle
With a retail presence of over 3,250 stores covering 4.6 million sq. ft., ABLBL has significant penetration across metro cities, tier-2 towns, and e-commerce platforms. Around 70% of its stores follow a franchise-led asset-light model, offering better scalability and lower fixed costs.
🔁 Demerger Details: What ABFRL Shareholders Got
The ABLBL listing follows the completion of a strategic demerger from ABFRL in May 2025. As per the approved scheme, existing shareholders of ABFRL received:
- ➡️ 1 share of ABLBL for every 1 share held in ABFRL
- ➡️ Continued ownership of their original ABFRL shares
This corporate restructuring was designed to unlock value and provide each company the ability to pursue focused business strategies independently.
💼 Debt & Capital Structure Post-Demerger
As part of the demerger, Rs 3,000 crore worth of total borrowings from ABFRL have been divided:
- 💸 Rs 1,000 crore transferred to ABLBL
- 💸 Rs 2,000 crore remains with ABFRL
Additionally, ABFRL plans to raise Rs 2,500 crore in fresh equity within 12 months of the demerger to strengthen its balance sheet and support growth initiatives. Promoters are expected to participate in this capital raise.
📊 Why This Matters for Investors
The listing of ABLBL is not just a new stock in the market—it represents a targeted play on India’s fashion and retail growth story. With brands that already dominate the Indian wardrobe and a retail model that mixes physical and digital, the stock may attract medium- to long-term investors looking for value and expansion potential.
The Aditya Birla Lifestyle share price debut close to intrinsic value suggests the market has a wait-and-watch stance, but brokerage coverage indicates a possible upside if execution aligns with expectations.
🌐 Digital & Distribution Power
Beyond brick-and-mortar stores, ABLBL is also betting big on omni-channel retailing, including tie-ups with large format retailers (LFS), multi-brand outlets (MBOs), and strong e-commerce growth. The presence of well-known global brands like American Eagle and Reebok further strengthens its reach among the youth demographic.
📌 Final Thoughts: ABLBL's Independent Journey Begins
With the successful listing of ABLBL, the Aditya Birla Group has effectively split its retail empire into two powerhouses—one focused on lifestyle fashion (ABLBL) and the other on value fashion and innerwear (ABFRL). Each now has the agility and focus to pursue growth, improve profitability, and attract the right kind of investor interest.
As the ABLBL share price starts its independent journey, all eyes are on how the company navigates its brand strategy, expansion plans, and consumer engagement. If executed well, Motilal Oswal’s ₹190 target could be just the beginning.
Disclaimer: This blog post is for informational purposes only and not financial advice. Please consult a registered advisor before making investment decisions.
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