Arvind Fashions on Friday announced that it has entered into a Share Purchase Agreement (SPA) with Reliance Beauty & Personal Care Limited. The share purchase agreement for the sale of the entire equity stake of Arvind Beauty Brands Retail Limited to Reliance Beauty & Personal Care Limited, has been executed today and the sale is expected to be completed by November 3 2023.
“Arvind Fashions Limited has entered into a Share Purchase Agreement (SPA) with Reliance Beauty & Personal Care Limited, a wholly owned subsidiary of Reliance Retail Ventures Limited to sell and transfer the entire equity stake held by the company in the following subsidiary company and upon completion of the formalities comprised under the SPA, the following company would cease to be the subsidiary of the Company,” Arvind Fashions said in a regulatory filing.
It further stated that the transaction has been done at enterprise value of Rs 216 crore towards sale of entire equity stake and repayment of loans. The Purchase consideration towards sale of the entire equity stake is Rs 99.02 crore.
Arvind Beauty Brands had, during the financial year 2022-23, posted a turnover of Rs 336.70 crore which accounted for 7.60 per cent of the consolidated revenue of the company.
Earlier in September last year, media reports had stated that Reliance Retail was in advanced talks to get the rights for beauty retailer Sephora in India, which will lead to the transfer of Sephora operations from Arvind Fashions Ltd to Reliance Retail.