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, consolidates the company's control over the Flying Machine brand, which has established itself as a leading casual wear brand on digital platforms. Shares of Arvind Fashions fluctuated between gains and losses on Monday, trading 0.8% lower at ₹513.35.

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. The acquisition aims to enhance operational efficiency and strategic control.

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.

Strong Financial Performance

Arvind Fashions reported robust September quarter earnings with net profit increasing 25% to ₹37.50 crores compared to the previous year. Revenue grew 11% to ₹1,418 crores, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 16% to ₹188 crores. Operating margins expanded to 13.30% from 12.70% in the year-ago period.

Market Outlook and Stock Performance

Brokerage firm Motilal Oswal recently initiated coverage on Arvind Fashions with a "buy" recommendation and base case price target of ₹725 per share. The firm projected a 114% upside in a bull case scenario. Despite the positive analyst outlook, shares are down 2.40% in the current year. The transaction has been classified as a related party transaction under SEBI regulations, with approval from the audit committee.

Arvind Youth Brands Private Limited, incorporated on February 27, 2020, operates wholesale and retail of apparels and accessories under the Flying Machine brand. The 40-year legacy brand in Indian denim has maintained strong presence across metros and tier-II towns, catering to fashion-conscious youth across India.

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.