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.
At 1.20 pm,shares of the Arvind Ltd were trading 10.89 per cent up at Rs 398.65. The scrip opened the day at Rs 365 and had touched a high and low of Rs 401.30 and Rs 350.95, respectively, in trade so far. Benchmark BSE Sensex was down 128.88 points at 28,050.50.
On a standalone basis, Arvind Ltd registerd 12.48 per cent fall in its net profit at Rs 67.27 crore for the quarter under review as compared to Rs 76.86 crore for the same quarter in the previous year.