Arvind Fashions Acquires 31.25% Stake in Arvind Youth Brands
Filing Summary
Arvind Fashions Limited has announced the acquisition of a 31.25% stake in its subsidiary, Arvind Youth Brands Private Limited, from Flipkart India Private Limited. The transaction, valued at INR 135 Crores, will result in Arvind Youth Brands becoming a wholly owned subsidiary of Arvind Fashions. The acquisition is structured as a cash consideration and is classified as a related party transaction. The completion of the acquisition is scheduled for December 29, 2025. This move aligns with Arvind Fashions’ strategy to enhance operational efficiency and strategic control over its subsidiary.
Arvind Fashions Limited has entered into a Share Purchase Agreement with Flipkart India Private Limited to acquire the latter’s entire shareholding of 31.25% in Arvind Youth Brands Private Limited. This acquisition will result in Arvind Youth Brands becoming a wholly owned subsidiary of Arvind Fashions. The transaction was approved by the Board of Directors on December 29, 2025, and is set to be completed on the same date.
The financial terms of the acquisition involve a cash consideration of INR 135 Crores. Arvind Fashions will acquire 1 equity share of INR 10 each and 58,95,852 Compulsory Convertible Preference Shares of INR 100 each. This transaction is classified as a related party transaction under SEBI regulations, as Flipkart India Private Limited is a related party of Arvind Youth Brands. The audit committee of Arvind Fashions has approved this transaction, which is conducted at arm’s length based on a valuation report by B B S R & Associates LLP.
Arvind Youth Brands Private Limited is engaged in the wholesale and retail of apparel and accessories under the brand name “Flying Machine.” The company reported a turnover of INR 432 Crores for the financial year ending March 31, 2025. The acquisition aims to provide Arvind Fashions with enhanced strategic control and operational efficiency over its subsidiary, aligning with its business objectives.
The acquisition does not require any governmental or regulatory approvals. The transaction is expected to be finalized on December 29, 2025, as per the indicative timeline provided. Upon completion, Arvind Fashions, along with its wholly owned subsidiary Arvind Lifestyle Brands Limited, will hold 100% of the shareholding in Arvind Youth Brands on a fully diluted basis.
Arvind Fashions Limited is a prominent player in the apparel and retail industry, focusing on building a portfolio of leading fashion brands. The company aims to strengthen its market position through strategic acquisitions and operational enhancements. Arvind Fashions continues to expand its brand presence and improve its business operations to drive growth in the competitive retail sector.