Textiles major Arvind Friday said it has received nod from the National Company Law Tribunal (NCLT) for its scheme of demerger of its branded apparel and engineering businesses into separate entities. According to the company, it expects demerger of branded apparel business and engineering business to become effective from the second half of November.
“We would like to inform you that today NCLT Ahmedabad has sanctioned the Composite Scheme of Arrangement… amongst Arvind Ltd and Arvind Fashions and Anveshan Heavy Engineering and The Anup Engineering and their respective Shareholders and Creditors,” said Arvind Ltd in a regulatory filing.
The Ahmedabad bench of NCLT has approved scheme of demerger of branded apparel business and engineering business of Arvind Ltd into Arvind Fashions and Anveshan Heavy engineering.
Commenting of the development Arvind Chief Financial Officer Jayesh Shah said a certified copy of the order will be received in due course.
“We expect that demerger will become effective during 3rd or 4th week of November and Arvind Fashions and Anveshan may get independently listed in early January,” Shah was quoted by PTI as saying.
In FY 2017-18, Arvind Ltd had a revenue of Rs 6,423.34 crore.