Arvind Fashions - A Step In The Right Direction: ICICI Securities

Mens shirts section on display inside Big Bazaar. (Source: BloombergQuint)

Arvind Fashions - A Step In The Right Direction: ICICI Securities

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ICICI Securities Report

Arvind Fashions Ltd. announced that Arvind Lifestyle Brands Ltd., a wholly owned subsidiary of Arvind Fashions, has signed a definitive agreement for the strategic sale of assets of its Unlimited retail business to V-Mart Retail Ltd. for an all cash consideration of Rs 1.5 billion.

Unlimited operates a chain of 74 value fashion retail stores across South and West India and as a part of the transaction, it will sell the assets of these 74 retail stores along with ‘Unlimited’ brand to V-Mart at its book value and will thus, recover the entire capital employed in the business.

We believe the loss making Unlimited was a key drag on the company’s operational performance.

This divestment will enable the company to focus on its six high conviction brands, strengthen its balance sheet by repaying debt and improve company-wide profitability and return ratios.

Click on the attachment to read the full report:

ICICI Securities Arvind Fashions Company Update.pdf

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