Arvind Fashions Limited has completed the acquisition of Flipkart Group's stake in Arvind Youth Brands Private Limited (AYBPL) for ₹135 crores, making it a wholly owned subsidiary. The transaction, announced on December 29, 2025, consolidates the company's control over the Flying Machine brand, which has established itself as a leading casual wear brand on digital platforms.

Strategic Acquisition Details

The acquisition involves purchasing a 31.25% shareholding from Flipkart India Private Limited, comprising 1 equity share of ₹10 each and 58,95,852 Compulsory Convertible Preference Shares (CCPS) of ₹100 each. Upon completion, Arvind Fashions Limited, along with its wholly owned subsidiary Arvind Lifestyle Brands Limited, will hold 100% of the total shareholding in AYBPL on a fully diluted basis.

Management Commentary

Amisha Jain, Managing Director & Chief Executive Officer of Arvind Fashions, expressed gratitude to the Flipkart Group for their support in building Flying Machine into a brand of choice on digital channels. "Our relationship with the Flipkart group will continue ensuring consumers can still shop Flying Machine on its platforms. The brand will also be available to consumers on other digital channels and portals," Jain stated.

Flying Machine Brand Performance

Over the past five years, Flying Machine has re-established itself as a well-accepted brand on digital channels. The partnership with Flipkart Group helped Flying Machine become one of the top casual wear brands on digital platforms, catering to fashion-conscious youth across India. The brand, with a 40-year legacy in Indian denim, has been retailing on digital channels for over a decade and maintains strong presence across metros and tier-II towns.

Regulatory and Financial Structure

The transaction has been classified as a related party transaction under SEBI regulations, with approval from the audit committee of Arvind Fashions Limited. The acquisition is being conducted at arm's length, based on a valuation report dated December 24, 2025, issued by B B S R & Associates LLP. No governmental or regulatory approvals are required for this acquisition.

Arvind Youth Brands Private Limited, incorporated on February 27, 2020, operates in the wholesale and retail of apparels and accessories under the Flying Machine brand. The company reported a turnover of ₹432.16 crores for the financial year ended March 31, 2025, demonstrating strong business performance in the apparel and retail industry.

Arvind Fashions Limited has successfully completed the allotment of equity shares under its Employee Stock Option Scheme 2016, marking another milestone in its employee incentive program. The company announced the completion of this corporate action through official communication to stock exchanges on December 18, 2025.

Share Allotment Details

The company allotted a total of 7,500 equity shares with specific parameters that demonstrate the structured nature of the employee benefit program:

Regulatory Compliance

Arvind Fashions Limited maintained full transparency by promptly notifying both major stock exchanges about the share allotment. The company submitted the required documentation to BSE Limited and National Stock Exchange of India Limited, ensuring compliance with listing regulations. The communication was signed by Company Secretary Lipi Jha, reflecting proper corporate governance practices.

Employee Stock Option Scheme Framework

The allotment represents the exercise of vested stock options by eligible employees under the ESOS 2016 framework. This employee benefit program allows qualified personnel to acquire company shares, aligning employee interests with shareholder value creation. The scheme demonstrates the company's commitment to rewarding and retaining talent through equity participation.

Corporate Information

The company operates from its registered office at Arvind Limited Premises, Naroda Road, Ahmedabad, Gujarat, with additional presence in Bangalore, Karnataka. Arvind Fashions Limited trades on both BSE (scrip code: 542484) and NSE (symbol: ARVINDFASN), maintaining active listings on India's premier stock exchanges.