Arvind Fashions to acquire entire 31.25% stake in its arm from Flipkart India

Shares of Arvind Fashions Ltd. fluctuated between gains and losses on Monday, December 29, after the company said it has entered a into a share purchase agreement with Flipkart India Pvt. Ltd. to acquire its entire shareholding of 31.25% in its subsidiary Arvind Youth Brands Pvt. Ltd.

The acquisition will be on a fully-diluted basis, comprising one equity share of ₹10 each and 58.95 lakh compulsorily convertible preference shares of ₹100 each, upon closing of the transaction, it said.

With this, Arvind Youth Brands will become Arvind Fashions' wholly-owned subsidiary. The acquisition is for operational efficiency and enhanced strategic control, the company said.

Arvind Youth Brands has a wholesale and retail apparels and accessories business under the name "Flying Machine". The turnover of the firm for the financial year 2025 was ₹432.16 crore.

Arvind Fashions said its audit committee approved the related party transaction during its meeting on Monday.

Earlier this month, brokerage firm Motilal Oswal projected a 114% upside on Arvind Fashions in a bull case scenario, while it initiated coverage on the stock. In a base case scenario, it has set a price target

of ₹725 per share with a "buy" recommendation.

Arvind Fashions reported its September quarter earnings last month. Its net profit increased 25% to ₹37.5 crore from last year, while its revenue increased 11% to ₹1,418 crore. Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16% to ₹188 crore, while its operating margins expanded to 13.3% from 12.7% in the year-ago period.

Shares of Arvind Fashions are trading 0.8% lower on Monday at ₹513.35. The stock is down 2.4% so far in 2025.

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