Aditya Birla Nuvo Ltd (ABNL) announced a plan to merge with Pantaloons Fashion and Retail (PFRL). The move was announced this Sunday and if realized it will create India’s largest branded apparel company valued at Rs. 12000 crore. Under the plan announced Madura Fashion and Madura Lifestyle will be demerged into Pantaloons Fashions.

According to the announcement the board of PFRL has approved PFRL to be renamed as ‘Aditya Birla Fashion & Retail’.

Shareholders of ABNL will get 26 new equity shares of Pantaloons for every 5 shares held after the demerger of Madura Fashion, Madura garments shareholders will get 7 new equity shares of Pantaloons for every 500 shares held pursuant to the demerger.

Aditya Birla Fashion and Retail is expected to have the widest retail network in the fashion space with 1,869 exclusive stores across India, as on 31st March 2015.