Twitter
Advertisement

Arvind to dilute 10% in brands biz arm to raise Rs 740 cr

The entire stake, company said, will be acquired by Multiples, a private equity firm founded by Renuka Ramnath

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Arvind, one of India's largest textile and branded apparel player, is diluting 10% stake in its brands business arm to raise about Rs 740 crore. The entire stake, company said, will be acquired by Multiples, a private equity firm founded by Renuka Ramnath. The stake divestment pegs the pegging brands business arm's enterprise value at Rs 8,000 crore. Arvind plans to use resources raised to pare long-term debt and reduce the debt equity ratio to manageable levels.

Calling the deal an important milestone Sanjay Lalbhai, chairman and managing director, Arvind Limited, said, "With India becoming the fastest growing economy in the world, we are confident of continuing this growth momentum and taking the business from over Rs 3,200 crores this year to Rs 9,000 cr by 2022. This transaction helps us unlock the value that the brands business has accomplished in a short period and add financial muscle to future strategic opportunities for the Group. We will immensely benefit from our association with Multiples."

The company's brand portfolio includes global marquee brands include Gap, Aeropostale, Sephora, Calvin Klein, Tommy Hilfiger, US Polo Assn, Hanes, Nautica and Arrow among others. The company's business, according to company, has grown at a phenomenal pace with a compounded annual growth rate (CAGR) of 25% for the past three years and has clocked a turnover of Rs 2,300 crore for the fiscal 2015-16.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement