Shares of Arvind Fashions Ltd zoomed over 11% today after the firm said it would sell its personal care and beauty brand Arvind Beauty Brands Retail to Reliance Beauty & Personal Care, a wholly owned subsidiary of Reliance Retail Ventures Limited (a group company of Reliance Industries) for a purchase consideration of Rs 99.02 crore.
Arvind Fashions shares climbed 11.42% to Rs 362.70 against the previous close of Rs 325.50 on BSE. Market cap of the firm rose to Rs 457.89 crore. Total 0.52 lakh shares changed hands amounting to a turnover of Rs 1.79 crore. Arvind Fashions shares have lost 0.74 per cent since the beginning of this year and fallen 6.38 per cent in one year. The stock hit a 52-week low of Rs 261 on March 14, 2023 and 52 week high of Rs 377.25 on October 17, 2023. Arvind Fashions has a one-year beta of 0.9, indicating low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Arvind Fashions stock stands at 45.6, signaling the stock is trading neither in the oversold nor overbought zone. Arvind Fashions shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
“Transaction has been done at enterprise value of Rs 216 crore towards sale of entire equity stake and repayment of loans. The purchase consideration towards sale of entire equity stake is Rs 99.02 crore,” said Arvind Fashions.
“On a consolidated basis, the turnover of Arvind Beauty Brands Retail Limited in the previous Financial year 22-23 was Rs 336.70 crore which accounted for 7.60% of the consolidated revenue of the company. Net worth of Arvind Beauty Brands Retail Limited in the financial year 22-23 was Rs 10.6 crore, which accounted for 1.00% of the consolidated net worth of the company,” the company said in a communication to bourses.
The transaction was done at an enterprise value of Rs 216 crore towards sale of entire equity stake and repayment of loans.
Arvind Fashions is engaged in the business of marketing and distribution of branded apparels and accessories. The company operates through two geographical segments: In India, and Rest of the world. The company and its subsidiaries operate in the branded apparel, beauty, and footwear space. The company and its subsidiaries have a portfolio of owned and licensed international brands, including US Polo, Arrow, Flying Machine, Tommy Hilfiger, Calvin Klein, Sephora, and others.
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