Small Cap Stock Surges 11% After ₹216 Cr Deal With Reliance

Shares of Arvind Fashions surged up sharply on Friday afternoon after confirming the deal with Reliance Retail.

What Happened: The company which operates international brands such as US Polo and Calvin Klein in India, informed the exchanges that it has entered into a share purchase agreement with Reliance Beauty & Personal Care Limited, a subsidiary of Reliance Retail to sell and transfer the entire equity stake held by the company in Arvind Beauty Brands Retail Limited.

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The transaction has been done at an enterprise value of ₹216 crore towards the sale of the entire equity stake and repayment of loans. The stake sale side of the deal amounts to around ₹99 crore.

In the previous financial year 2022-23, Arvind Beauty Brands Retail Limited contributed around ₹336.70 crores to the company’s consolidated topline, accounting for 7.60% of the total consolidated revenue.

Price Action: Arvind Fashions’ share price was up 10.46% to trade at ₹359 on Friday afternoon.

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