Arvind Fashions said on Monday it will buy Flipkart India’s entire 31.25% stake in its denim-focused unit that runs the Flying Machine brand, in a deal valued at Rs 135 crore.
Arvind Youth Brands Private Limited runs Flying Machine, a popular denim and casualwear label with a broad footprint across India spanning wholesale and retail formats. Its turnover for the fiscal year ended March was Rs 432.16 crores.
The transaction includes one equity share with a face value of Rs 10 and 5.9 million compulsorily convertible preference shares priced at Rs 100 each. After the acquisition, Arvind Fashions, along with its wholly owned subsidiary Arvind Lifestyle Brands Limited, will own the business outright.
U.S. retail giant Walmart-owned Flipkart had injected Rs 260 crore into the youth brands unit back in July 2020.
The buyout is expected to simplify decision-making and enhance strategic control for Arvind, and reflects Flipkart’s wider push to rationalise its investments in India and focus capital on its core platforms.
The exit by Flipkart is in line with its recent strategy of pruning minority stakes in non-core businesses in India, as the Walmart-backed company sharpens its focus on its main e-commerce and logistics operations and seeks to improve capital efficiency ahead of a possible IPO.
