Arvind Fashions spikes 5% on Rs 260 crore investment from Flipkart

Shares of Arvind Fashions hit the upper circuit limit in afternoon trade on Thursday after the company said Flipkart will purchase a minority stake in its subsidiary for Rs 260 crore.

Shares of the company traded at Rs 178.50 on BSE, up 5 per cent from previous close.

Arvind Fashion's subsiary that owns Flying Machine has been retailing on the Flipkart Group platforms of Flipkart and Myntra for more than 6 years. Through this investment, the Flipkart Group and Arvind Fashions will work together to develop the brand further, the company said in a release.


"Given the strong existing relationship with the Flipkart Group, and their presence in online fashion, it was an obvious choice for us to enter into this engagement through which Flipkart and Myntra will be our preferred online partner for the Flying Machine brand, while we continue to grow our offline sales through channels like exclusive brand stores, department stores and multi-brand stores," said J Suresh, Managing Director and Chief Executive Officer of Arvind Fashions.

Metta Capital Advisors acted as the financial advisors to Arvind Fashions for this transaction.

Arvind Fashions markets a number of international brands in India, including US Polo Assn., Arrow, GAP, Tommy Hilfiger, Calvin Klein, Flying Machine, Aeropostale, The Children’s Place and Ed Hardy.

The shares of the company closed 0.24 per cent lower at Rs 169.60 on BSE.