Arvind to raise Rs 740 cr from PE firm Multiples

Textiles firm Arvind Ltd today said it will raise Rs 740 crore from Renuka Ramnath-led private equity firm Multiples by diluting 10 per cent stake in its subsidiary Arvind Fashions Ltd.
In a BSE filing, Arvind Ltd informed about "its decision to raise about Rs 740 crore by diluting 10 per cent in its brand business pegging its enterprise value at Rs 8,000 crore. The entire stake will be picked up by Multiples, the private equity firm founded by Renuka Ramnath."
"Arvind's brand portfolio clocked a turnover of Rs 2,300 crore in fiscal 2015-16.. Its portfolio of brands include Gap, Aeropostale, Sephora, Calvin Klein, Tommy Hilfiger, US Polo Assn, Hanes and Arrow," the company said.

Arvind Fashions houses the company's brands business.
"This transaction helps Arvind unlock the value that brands business has accomplished in a short period and add financial muscle to future strategic opportunities in the group," Arvind Ltd Chairman and MD Sanjay Lalbhai said.
"...We are confident of continuing growth momentum and taking the business from over Rs 3,200 crore this year to Rs 9,000 crore by 2022," he added.

The company expects to clock a 25 per cent compounded annual growth on its branded business to achieve its revenue target.
The company will invest in growing its existing brands to strengthen its innovation and technology, he said, adding it will not invest in newer assets.

Shares of Arvind Ltd were trading 8.15 per cent up at Rs 388.8 on BSE.