Following a news report that textile tycoon Sanjay Lalbhai-led Arvind met with merchant banks ahead of its plans to raise Rs 900 crore ($134 million) by divesting about a 15 per cent stake in the fully owned subsidiary Arvind Lifestyle Brands, Arvind Ltd has come out with a clarification.
Arvind Ltd has submitted to BSE, a copy of clarification. The copy says:
“There is no concrete proposal before the Board in this regard. Arvind Ltd constantly evaluates various options to raise resources by way of debt and equity to fund its expansion programmes.”
“Further we would like to assure you that the Company will, as required by Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) regulations, 2015, provide information of any such concrete proposals are considered by the Board.”
The clarification has been signed by Company Secretary, RV Bhimani.
The news report by The Times of India said: ‘Arvind management is in the midst of finalizing banks to run a formal fund-raise process, which could value its brands and retailing subsidiary, also the country’s second largest fashion and retail enterprise, at around $1 billion’.
Arvind Lifestyle Brands reported operating income of Rs 2,111 crore turnover and Rs 32 crore loss in FY15.
READ THE CLARIFICATION NOTE HERE