Shares of Arvind Fashions, which debuted today on exchanges, were locked in upper circuit of 5% at ₹620.50 on NSE today. Shares of Arvind Fashions, which was hived off from denim maker Arvind Ltd, debuted at ₹592 on NSE on the first day of listing. Meanwhile, shares of parent company Arvind Ltd were down 5% at ₹84.65. Till 11:43 am, 20,303 shares of Arvind Fashions had changed hands on NSE.
Arvind Fashions, which retails brands like Calvin Klein, Tommy Hilfiger and GAP, was demerged from parent company Arvind Ltd. In November 2017, parent Arvind Ltd had said it will demerge its fashion and engineering businesses into separate units to impart "greater focus" on them.
Arvind Ltd shareholders got 1 share of Arvind Fashions for every 5 shares held in he parent company. Shares of the engineering business, Anup Engineering, were listed on March 1.
Arvind Fashions had recorded a sales growth at 22% CAGR over FY14 to FY18, from ₹1,737 crore to ₹3,794 crore in FY18.
Arvind Fashions is looking to double its revenue to ₹8,000 crore in the next five years. The company has identified e-commerce as a growth strategy medium as digital is seeding brands in cities and towns where Arvind brands do not have a presence.
“Independent businesses end up creating a lot more value and we are confident that the business has achieved the scale to stand independently," said Kulin Lalbhai, executive director of Arvind Ltd, told Mint earlier.
Arvind Fashions was listed and admitted to dealings on the exchange in the list of 'T' group securities. The T group represents scrips which are settled on a trade-to-trade basis as a surveillance measure.