Arvind Fashions’ shares surged by 11% as the company announced the sale of its subsidiary, Arvind Beauty Brands Retail, to Reliance Beauty and Personal Care, a wholly-owned subsidiary of Reliance Retail Ventures. 

Arvind Fashions entered into a Share Purchase Agreement (SPA) with Reliance Beauty and Personal Care to transfer its entire equity stake in Arvind Beauty Brands Retail. Once the formalities under the SPA are completed, Arvind Beauty Brands will no longer be a subsidiary of Arvind Fashions.

The purchase consideration for the sale stands at Rs 99.02 crore. However, the transaction was completed at an enterprise value of Rs 216 crore, covering the sale of the equity stake and the repayment of outstanding loans.

As a result of this news, Arvind Fashions’ share price surged by 11.4% to an intraday high of Rs 362.20. By 3:10 pm, the scrip was trading at Rs 343.60, up 5.72% from the previous closing price on the National Stock Exchange (NSE).

In the previous fiscal year, Arvind Beauty Brands Retail Limited generated a turnover of Rs 336.7 crore, contributing 7.60% of Arvind Fashions’ consolidated revenue. The net worth of Arvind Beauty Brands was Rs 10.6 crore, accounting for 1% of the parent company’s consolidated net worth.