Overview

• The spin-off began trading on the NSE and BSE after shareholders received one lifestyle brand share for each ABFRL share, before prices slid about 4% from the Rs167.75 open.
• Aditya Birla Lifestyle Brands houses marquee names like Louis Philippe, Van Heusen and Peter England and holds exclusive rights for Reebok in India.
• The company will allocate Rs300 crore annually to organic growth and add roughly 250 to 300 stores each year in its push to expand nationwide.
• Around Rs1,000 crore of debt was transferred to the lifestyle unit, which aims to become debt-free within two to three years.
• Motilal Oswal initiated coverage with a Neutral rating and a Rs190 target, forecasting a 10% revenue CAGR and about Rs11 billion of free cash flow through FY28.