Arvind Fashions to transfer 'Flying Machine' brand to Arvind Youth Brands

Arvind Fashions and Arvind Lifestyle Brands, a wholly owned subsidiary of the Company have each signed definitive agreements to transfer by way of sale, of the wholesale trading business and the retail trading business in "Flying Machine" brand respectively to a wholly owned subsidiary, Arvind Youth Brands.

The Board of Directors of the respective Companies had in February approved the sale as a "going concern" on a slump sale basis for a lump sum consideration to be mutually agreed of not less than the book value of the division as appearing on the date of actual transaction. The shareholders of the Company have also approved the transaction pursuant to Section 180 of the Companies Act, 2013 on 26 March 2020 through postal ballot.

The Company will receive lumpsum consideration of Rs. 61. 9 crore from the transaction and Arvind Lifestyle Brands will receive a lumpsum consideration of Rs. 151.3 crore, subject to working capital adjustments.

Powered by Capital Market - Live News