Indian textile and apparel conglomerate Arvind Limited has received the green signal from National Company Law Tribunal (NCLT) for its initiative to de-merge its apparel and technology business into two separate entities.
The textile major is aiming to complete the devolve of its two businesses by the mid of next month and Arvind Fashions and Anveshan are expected to be listed separately in the stock market early next year.
Notably, Arvind Limited announced the de-merger of its two entities last year and after around one year’s time, NCLT Hyderabad bench sanctioned the composite scheme of Arrangement which now enables the Indian brand to split its businesses.
Elaborating the scenario, the brand issued a statement that cited “We would like to inform you that today, NCLT Ahmedabad has sanctioned the Composite Scheme of Arrangement… amongst Arvind Ltd and Arvind Fashions and Anveshan Heavy Engineering and The Anup Engineering and their respective Shareholders and Creditors.”
Additionally, the last fiscal year yielded a revenue of more than Rs. 6,400 crores for the brand and it is in line with its organisational goals of attaining a revenue of Rs. 9,000 crore by 2022.
Jayesh Shah, Chief Financial Officer, Arvind Ltd spoke on the development and elucidated that the company is now waiting for the certified copy of the order from the NCLT which will allow the splitting procedure to kick off.
Source: https://in.apparelresources.com