NCLT clears scheme of demerger of branded apparel and engineering businesses of Arvind

By: |
Ahmedabad | Published: October 27, 2018 4:45:50 AM

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved the scheme of demerger of branded apparel and engineering businesses of Arvind into two entities.

NCLT, businesses of Arvind, Jayesh Shah, Arvind Fashions, Flying MachineThe board of the company had given approval to transfer the apparel business to Arvind Fashions and move the engineering division to Anveshan Heavy Engineering in November last year.

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has approved the scheme of demerger of branded apparel and engineering businesses of Arvind into two entities. The company is expecting of demerger by end of November this year, and both the new firms may get listed in early January. Jayesh Shah, chief financial officer of Arvind, said: “The scheme of demerger of branded apparel and engineering businesses of Arvind into Arvind Fashions and Anveshan Heavy Engineering has been approved by NCLT today. The certified copy of the order will be received in due course. We expect that demerger will become effective during 3rd or 4th week of November and Arvind Fashions and Anveshan may get independently listed in early January.”

The board of the company had given approval to transfer the apparel business to Arvind Fashions and move the engineering division to Anveshan Heavy Engineering in November last year. In a regulatory filing on BSE, the company informed that NCLT had sanctioned the composite scheme of arrangement under sections 230 to 232 read with section 66 and other applicable provisions of the Companies Act, 2013 amongst Arvind and Arvind Fashions and Anveshan Heavy Engineering and The Anup Engineering and their respective shareholders and creditors.

Arvind makes fabrics and retails in-house apparel under the brand names of Flying Machine, Newport and Excalibur and global brands like GAP, Ed Hardy, Arrow, Hanes and Wonder Bra. The engineering division makes products for refineries, pharmaceutical companies, gas and power plants and aluminum producers. It will be renamed as Anup Engineering after the restructuring.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Why smartphones overheat and how to prevent it
2Finance Minister Arun Jaitley holds meeting with banks to review liquidity situation
3Supreme Court grills CFO, auditors of Amrapali Group; says CMD, directors to remain under police surveillance