Arvind Limited is engaged in the business textiles, fashions, engineering business and other business. The company is a leading fabrics and apparel supplier to world’s top brands and a prominent technical textiles player. Arvind Fashions Limited (AFL) is a leading branded apparel and accessory platform. Branded apparels (comprising 30-40 per cent of the total consolidated revenue) reported an impressive set of numbers in terms of turnover and operational efficiency. Engineering business has shown impressive revenue growth, is debt free and has good EBITDA margin in all segments of the company

TRANSACTION

Demerger of the branded apparel and engineering arms of the company, thereby creating two new listed companies by the name of Arvind Fashions and Anup Engineering, respectively.

Currently, branded business is carried out as a division of Arvind Limited including investment in Arvind Fashion Limited. The structuring branded apparel business including holding in AFL will be demerged into AFL. Other than Arvind Limited, Multiple PE, a private equity investors, is holding approx. 10.31% stake in AFL. Appointed Date for the Demerger of Branded Apparel Business is Effective Date.

Before the demerger process, AFL will consolidates existing share capital with change from face value Rs 2 each to Rs 4 each. Swap ratio for demerger is one equity shares to be issued for every five equity shares held in Arvind Limited. Equity shares held by Arvind Limited in AFL will be cancelled as part of demerger process.

Currently, engineering business is carried as division of Arvind Limited including investment in Anup Engineering. Through this structuring engineering business including holding in Anup Engineering will be demerged into Anveshan and then merger of Anup Engineering into Anveshan. Other than Arvind Limited, banker and other public are holding approx. 6.46% stake in Anup Engineering. Appointed Date for Demerger of Engineering Business and then merger of Anup in Anveshan is 1st January, 2018. Swap ratio for the demerger is one equity shares to be issued by Anveshan for every 20 equity shares held in Arvind Limited. Swap ratio for merger is seven equity shares to be issued by Anveshan for every 10 equity shares held in Anup Engineering.

Pre & Post Transaction Promoters’ Holding

Arvind-Demerger-Apparel-Business-1

RATIONALE

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