Shares of Arvind Fashions Ltd were negatively hit on 29 December after the company announced that it had signed a Share Purchase Agreement with Flipkart India Pvt Ltd for acquiring its entire stake of 31.25% in the company’s subsidiary Arvind Youth Brands Pvt Ltd. 

Arvind Fashions will acquire Arvind Youth Brands on a fully diluted basis by taking over one equity share of Rs 10 each and 58.95 lakh compulsorily convertible preference shares priced at Rs 100 each once the deal closes. After the acquisition, Arvind Youth Brands will become a wholly owned subsidiary of Arvind Fashions.

The company said the move will improve operational efficiency and give it stronger strategic control. Arvind Youth Brands runs the wholesale and retail apparel and accessories business under the “Flying Machine” brand and reported a turnover of Rs 432.16 crore in FY25.

Arvind Fashions added that its audit committee approved the related-party transaction at its meeting held on Monday. The acquisition is expected to streamline decision-making and strengthen Arvind’s control over the business.

Flipkart’s exit reflects its broader strategy to reduce minority holdings in non-core Indian businesses. The Walmart-backed firm continues to redirect capital toward its core e-commerce and logistics platforms while improving capital efficiency ahead of a potential IPO.

At 1:32 pm, the shares of Arvind Fashion were trading 1.68% lower at Rs 508.60 on NSE.

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