It has shown growth in revenue with profitably while also able to expand its product portfolio. Recently, Arvind Limited announced the transfer of its Advanced Material Business to its wholly owned subsidiary on a slump sale basis.
Arvind Limited ("Transferor Company") is inter-alia engaged in the business of entire textile value chain either directly or through its subsidiaries/Joint Ventures. The equity shares of Arvind Limited are listed on nationwide bourses. Over the years, the structure of the company has undergone several changes through various schemes of arrangements. Currently, the broader business segments of Arvind Limited includes:
Textile business comprising of a manufacturing and supply of woven, denim and garment products and
Advanced material business
Arvind Advanced Material Limited 1 ("Transferee Company") is inter-alia engaged in the business of manufacturing and supply of advanced O material. The company is a wholly owned subsidiary of Arvind Limited. It is - pertinent to note that the Transferee Company did significant revenue only in FY 2024 aggregating to circa INR 95 crore.
The Proposed Transaction
The Board of Directors of Arvind Limited and Arvind Advanced Material Limited in their respective board meeting approved a Scheme of Arrangement which inter alia provides for transfer of advanced material business of Arvind Limited to Arvind Advanced Material Limited through a Slump Sale.
Advanced material Business includes all business units located in various locations engaged in the business of Human Protection fabric & garments, Industrial Products, Advanced Composites and Automotive Fiber.
Some of the key rationale for internal restructuring are:
Consolidation of advanced material business
Bu hikaye M & A Critique dergisinin June 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye M & A Critique dergisinin June 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Raymond Group continues Segregation of its Business Verticals
After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.
Ultratech Cements adds India Cement in its shopping cart
India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”
SIEMENS Energy to be a separate entity in alignment with global strategy
Siemens AG announced its Vision 2020+ which included the spin-off of its Gas & Power [G&P) i.e., Energy Business into Siemens Energy.
Arvind Group separates its Advanced Material Business for independent growth trajectory
Advanced Material Business (AMD) of Arvind Limited focuses on advanced materials and caters to customer needs across the textile value chain, including specialty yarns, fabrics, and ready-made products.
Merger for bail-out from debt obligation
Ind Swift Limited (herein after also referred to as 'ISL' or 'Transferor Company') is engaged in the business of manufacturing of Pharmaceutical Products.
Batliboi Ltd. merging its associate company
Batliboi Limited has a history of collaborations with various foreign technical partners and has subsidiaries like Hydraulic & General Engineers Ltd. and Batliboi International Ltd. In March 2024, the board of Directors of Batliboi Limited accorded their approval for the merger of promoter owned private company with itself.
TVS Motors issuances of convertible preference shares as bonus instead of dividend
Recently, well known auto manufacturer announced the issuance of preference shares as a bonus to all equity shareholders.
Aditya Birla Fashion & Retails Scheme to undo its consolidation
Corporate restructuring saga continues for Aditya Birla Group.
Advent International to combine its listed & private entity business
Recently, Advent International announced the merger of its privately held pharma company into recently acquired listed pharma company.