Arvind sells 10% in retail arm for Rs 740 crore to Multiples – Feedback

Textiles firm Arvind has raised Rs 740 crore by selling 10% stake in its retail arm to Multiples, a private equity firm, in an effort to pare debt.

The retail division houses more than two dozen in-house and global franchisee brands such as Gap and US Polo, along with joint ventures with Calvin Klein and Tommy Hilfiger. The company’s debt currently stands at Rs 3,540 crore, which is expected to decline to Rs 2,500 crore once the deal is effective in November. “We are going to use the funds to retire debt. I don’t like long-term debt and I don’t want to ever worry about cash flows. We have sufficient cash flows for growth engine,” said Sanjay Lalbhai, chairman, Arvind Limited. With an enterprise value of Rs 8,000 crore, Arvind’s retail arm is more than double than the market capitalisation of Shoppers Stop, which stands at Rs 3,102 crore and nearly four times that of Future Lifestyle, which stands at Rs 2,588 crore.

http://economictimes.indiatimes.com/industry/cons-products/garments-/-textiles/arvind-sells-10-in-retail-arm-for-rs-740-crore-to-multiples/articleshow/55058661.cms

About news

We take care of publishing the latest investment news and highlights for Feedback

Leave a Reply

Your email address will not be published. Required fields are marked *