Arvind Fashion witnessed a remarkable 11.4 percent surge in its shares as the fashion player entered into a share purchase agreement with Reliance Beauty & Personal Care, who will acquire Arvind Beauty Brands.
Arvind Fashions will sell and transfer the entire equity stake in Arvind Beauty Brands to Reliance Beauty & Personal Care, a wholly owned subsidiary of Reliance Retail Ventures, for a purchase consideration of Rs 99.02 crore.
As of 1.25 p.m., shares of Arvind Fashions were trading at Rs 348.9 apiece on the NSE, marking a 7.35 percent increase from the previous session’s closing price.
It’s worth noting that the transaction was completed at an enterprise value of Rs 216 crore, which includes the sale of the entire equity stake as well as the repayment of outstanding loans.
In the previous fiscal year, Arvind Beauty Brands achieved a turnover of Rs 336.7 crore on a consolidated basis, accounting for 7.60 percent of Arvind Fashions’ consolidated revenue. The net worth of Arvind Beauty Brands stood at Rs 10.6 crore in the last fiscal, representing one percent of the parent company’s consolidated net worth.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
