The company split Aditya Birla Lifestyle and its fashion brands, forming Aditya Birla Lifestyle Brands as an independent company to help it grow further.

Aditya Birla Fashion and Retail Ltd. shares responded this week after the separation of its lifestyle brand into Aditya Birla Lifestyle Brands Ltd. The division enjoys a 1:1 demerger ratio, so shareholders in the parent company will get one lifestyle and fashion-focused share for every share currently held.

Among Aditya Birla Lifestyle Brands’ portfolio, Louis Philippe, Van Heusen, Allen Solly and Peter England are familiar fashion brands. This new company will look after casual clothing from American Eagle and Forever 21 as well as sportswear from Reebok and Van Heusen’s line of underwear.

The NSE and BSE will list the shares of Aditya Birla Lifestyle Brands as a single, independent company. On May 22, the record date for the demerger, the company also adjusted its share price.

With the split, Aditya Birla Fashion and Retail will strive to maintain financial stability by raising Rs 2,500 crore in capital within a year. The goal of the lifestyle and fashion sector is to locate new sources of value and extra growth for both companies.

Even so, the demerger affected Aditya Birla Fashion and Retail shares which fell by a significant 66% overnight as investors responded to the news. The outlook is not completely optimistic, but analysts agree employees and shoppers might boost sales by up to 11.9% next year.