Nov 9, 2017, 04:00 IST The Sanjay Lalbhai-led Arvind Ltd,
the country's largest textile and branded apparel manufacturer, said on
Wednesday that it would split into three separate listed entities.
The move involves demerging the branded apparel and engineering arms into separate entities, Arvind Fashions and Anup Engineering. After the demerger, Arvind Ltd will continue to run the textile manufacturing business. Interestingly, the company started as a textile manufacturer in the 1990s.
Shareholders of Arvind Ltd will get one equity share of Arvind Fashions for every five shares held by them, while they will get one share of Anup Engineering for every 27 shares held by them. The demerger of the parent, with a consolidated total income of over Rs 9,300 crore in fiscal 2017, is expected to be completed in eight-nine months, company officials said. The current demerger comes two years after Arvind Ltd hived off its real estate business into a listed entity, Arvind Smart Space.
On Wednesday, Arvind Ltd's stock price on the BSE closed more than 9% lower. Though company officials said that investors were not able to appreciate the full potential of the value-unlocking process that the group has embarked on, some dealers said the slide in the stock price was mainly due to a drop in its quarterly numbers.
On Tuesday, the company reported a 16% drop in consolidated net profit for the July-September quarter to Rs 65 crore, from Rs 77 crore, mainly due to the impact of implementation of GST in the country. The company, however, said effective April 1, 2017, it has consolidated Tommy Hilfiger Arvind Fashion and Calvin Klein Arvind Fashion as subsidiaries and, therefore, the second quarter results were not comparable. Total income during the quarter under review was at Rs 2,654 crore — up nearly 13% from Rs 2,353 crore during the same quarter of fiscal 2016.
Next read : Balkrishna industries runs fast post q2 results and bonus issue
The move involves demerging the branded apparel and engineering arms into separate entities, Arvind Fashions and Anup Engineering. After the demerger, Arvind Ltd will continue to run the textile manufacturing business. Interestingly, the company started as a textile manufacturer in the 1990s.
Shareholders of Arvind Ltd will get one equity share of Arvind Fashions for every five shares held by them, while they will get one share of Anup Engineering for every 27 shares held by them. The demerger of the parent, with a consolidated total income of over Rs 9,300 crore in fiscal 2017, is expected to be completed in eight-nine months, company officials said. The current demerger comes two years after Arvind Ltd hived off its real estate business into a listed entity, Arvind Smart Space.
On Wednesday, Arvind Ltd's stock price on the BSE closed more than 9% lower. Though company officials said that investors were not able to appreciate the full potential of the value-unlocking process that the group has embarked on, some dealers said the slide in the stock price was mainly due to a drop in its quarterly numbers.
On Tuesday, the company reported a 16% drop in consolidated net profit for the July-September quarter to Rs 65 crore, from Rs 77 crore, mainly due to the impact of implementation of GST in the country. The company, however, said effective April 1, 2017, it has consolidated Tommy Hilfiger Arvind Fashion and Calvin Klein Arvind Fashion as subsidiaries and, therefore, the second quarter results were not comparable. Total income during the quarter under review was at Rs 2,654 crore — up nearly 13% from Rs 2,353 crore during the same quarter of fiscal 2016.
Next read : Balkrishna industries runs fast post q2 results and bonus issue
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