Shares of Arvind Fashions jumped 11.4 percent on November 3 as the fashion player entered into an agreement to sell off its unit Arvind Beauty Brands, which runs the Sephora India business, to Reliance Retail Ventures.
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.
Shares of Arvind Fashions ended at Rs 344 apiece on the NSE on November 3, higher by 5.85 percent from the closing price of the previous session. At 1.25 p.m., the shares had risen 7.35 percent.
However, the transaction was completed at an enterprise value of Rs 216 crore which would go towards the sale of the entire equity stake as well as repayment of outstanding loans.
Follow our market blog for live updates
On a consolidated basis, the turnover of Arvind Beauty Brands in the previous fiscal year was Rs 336.7 crore. This accounted for 7.60 percent of the consolidated revenue of Arvind Fashions.
The net worth of Arvind Beauty Brands Rs 10.6 crore in the last fiscal, which accounted for one percent of the consolidated net worth of the parent.
Shareholding pattern, stock price movement
Over the past six months, shares of Arvind Fashions have risen 23.05 percent while the blue-chip index Nifty 50 has given investors returns of 6.46 percent. The company has a market capitalisation of Rs 4,634.2 crore.
The promoter holding was primarily unchanged for the quarter ended September at 36.8 percent. FIIs increased their holdings to 16.6 percent, while DIIs held 8 percent of the company's shares during the quarter. The public owned 38.6 percent shares in the firm.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
