At 12:15 pm, Arvind was trading 7.5% higher at Rs 118, after opening at Rs 110 on the BSE, as compared to a 0.72% rise in the S&P BSE Sensex. The trading volumes on the counter surged more than 19-fold with a combined 66.89 million equity shares changed hands on the BSE and NSE so far.
Arvind’s branded apparel undertaking and engineering undertaking transferred into Arvind Fashions and Anveshan Heavy Engineering respectively. The company has fixed November 29, 2018, as the record date for determining the equity shareholders of Arvind for the purpose of allotment of equity shares of Arvind Fashions and Anveshan Heavy Engineering.
As per the notice, shareholders of Arvind Fashions will receive one fully paid up equity share of Rs 4 each for every 5 shares held in Arvind and Anveshan Heavy Engineering’s shareholders will be allotted one fully paid up equity share of Rs 10 each for every 27 shares held in Arvind.
The company said the demerger will allow each business to have a sharper focus on developing their own aggressive growth models, on making their own capital allocation decisions and on incentivising their teams. This sharper focus will enable businesses to create long-term shareholder value.