Textiles and branded apparel major Arvind Ltd said on Monday that it has raised Rs740 crore by diluting stake in subsidiary Arvind Fashions Ltd. The company has completed the transaction and raised the amount from Multiples, a private equity firm, the company informed BSE in a filing.
“We hereby inform you that Arvind Fashions Ltd, a wholly owned subsidiary of the company, has completed the transaction and raised equity capital of Rs740 crore pursuant to share subscription and shareholders agreement dated October 25, 2016 signed with three funds managed by Multiples,” the company said.
“The transaction was done at overall enterprise valuation of Rs8,000 crore for company’s branded apparel business,” the company added.
On 25 October, Arvind had informed that its board had approved the fund-raising of Rs740 crore by diluting 10% stake in Arvind Fashions.
Arvind is the largest integrated textile and apparel company, and in FY16, it had a revenue of Rs5,407.26 crore.
Shares of Arvind Ltd declined 1.76% to close at Rs335.75 on the BSE, while the benchmark Sensex shed 1.47% to close at 25,765.14 points.