Arvind Q2 profit rises 1.5%, to sell 10% stake in subsidiary

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Arvind Q2 profit rises 1.5%, to sell 10% stake in subsidiaryArvind Q2 profit rises 1.5%, to sell 10% stake in subsidiary

Posted By: indianews October 25, 2016

Arvind Ltd shares soared over 10 per cent intraday on Tuesday after the company informed bourses about its decision to raise about Rs 740 crore by diluting 10 per cent stake in its brand business arm, 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.

The company also announced its financial results for the quarter ended September 30, 2016 on Tuesday. On the consolidated basis, the company posted 1.47 per cent rise in its net profit after taxes, Minority Interest & Share of Profit / (Loss) of Associates at Rs 71.70 crore for the quarter ended September 30, 2016 as compared to Rs 70.66 crore for the same quarter in the previous year.

The total income of the company increased by 19.05 per cent at Rs 2,353.22 crore for quarter under review as compared to Rs 1,976.70 crore for the quarter ended September 30, 2015.

Arvind is no more just a textile business, but a brands business as well, says Prakash Diwan of prakashdiwan.in. The company is planning to develop brands business further and is working to reduce its debt. The fall, if any, in the stock is a buying opportunity, Diwan said. At 12:39 hours IST, the stock was quoting at Rs 386.65, up Rs 27.15, or 7.55 percent amid high volumes after hitting a 52-week high of Rs 387 on the BSE.

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