Have they filed detailed scheme of de-merger yet?
Not appearing on BSE.
Just found that scheme of arrangement has been made available at:
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@django and @varadharajanr âŚANVESHAN HEAVY ENGINEERING LIMITED was incorporated on Sep14, 2017 and it would be one of the company to be listed after demerger. Per say demerger documents, AEL(Anup Engineering Ltd) would become subsidiary of this company
Would appreciate if you folks or anyone else can help to understand the real purpose behind this exercise.
Also, why the Face value of shares for AFL (Arvind Fashion limited) is being revised to INR 4 from current INR 2?
As mentioned in âscheme of arrangementâ document it seems demerger would help individual entities raise capital on their own. Also management has been saying so in their interviews https://youtu.be/z6KzcfLzHE4
As far as I remember there will not be any cross holding post demerger.
Guessing you already knew all this from published documents. Is there anything you doubt?
I donât know.
Was wondering about it.
Without getting into much details now, I am just waiting to see at what Market Cap these 3 companies are put up after demerger.
Cheers,
django
Presently 8-10% returns expected on Demerger. But FII / NHI might rush to buy Arvind Fashion ltd due to its crisp balance sheet and strong growth. it would rerate the company.
Anup Engg is into capital goods with cash rich company. hence it can see good PE multiple. We can expect good dividends too.
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My workings as below.
Below is small number crunching for the Arvind Limited demerger.
Last week, Arvind gave opportunity to add around 380 and now also.
few update on Arvind Ltd demerger
Arvind Ltd is going to demerger its branded fashion business and engineering business as below.
Ratio as follows:
1 Arvind Fashions limited for every 5 shares of Arvind limited
1 Anveshan limited (Anup engineering) for every 27 shares of Arvind limited
Present MCap of Arvind limited is 10500 crores. we can see multifold returns in 5 years from fashion business. Pl share your views.
You need to buy 135 shares of Arvind Limited to be eligible for followings post demerger.
- Arvind Limited - 135 shares
- Arvind Fashion - 27 shares
- Anup Engg - 5 shares
Investment at CMP: 135*380 = 51300
Returns based on possible range
Arvind Limited = 135 * 200 = 27000
Arvind Fashion = 27 * 1000 = 27000 (instead of 1250 as per last PE sale, considered discount due to huge valuation. Even at 1000, it is not cheap)
Anup Engg = 5 * 200 = 1000
Total = 55000
Returns: 7% gains ( Assumptions: Post demerger Arvins limited Mcap: 6000 crores, Anup Engg Mcap: 200 crs, Arvind Fashion: 6400crs (whereas it sales 3000 crs, expecting 2 times of its sales valuation is not cheap)
hence returns could be much lower if market sentiment is bearish. Not taken single qty. But watching closely on declines.
Quickly it ran up to 420 levels.
Note: not factored double digit margin expectations by 2020 of Arvind fashion
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any update on what exactly is stopping the demerger? when is it expected to be completed? demerger could probably be the only value unlocking trigger for thisâŚ
Any idea when are they going to come up with the IPO of de-merged entity (arvind fashion/amulya i think)? and what could be base price.
I donât think thereâll be an IPO. Itâs a demerger and the shareholders have been given the shares proportionately. I got the message for the credit of shares sometime last week. So, for now we just need to wait for the listing, which might take a week or two more.
Demerger: Cost of Acquisition.
Arvind Fashions keen on staying chic, seeks to double sales to Rs 8000 cr in next 5 years
The company is also riding on the value retail segment through its store chain Unlimited which currently has 100 stores and is expected to touch âš1,000 crore revenue next year, growing at 30%.
Hi All Is there any website or means where i can get standalone data of Arvind fashion and see how company has performed earlier in past so that a good decision can be taken
any reason for this massive fall in arvind millsâŚlooks like the entire focus of the management is only on arvind fashions and engineeringâŚare they giving up on arvind mills.
Arvind:
To raise Rs 490/- cr LT loan.
CARE rating downgraded from AA TO AA (-) Negative
Elongated WC cycle due to RM stocking and 2 month credit period for customers.
Prepaid term loan of Rs 40Cr falling due on Fy2021.
Steady cash accruel and posive cash flow give adequate liquidity.
Any thoughts on this counter (both Arvind ltd and Arvind Fashion) after the brutal fall and bit of consolidation in last 2-3 weeks?
Was going through Annual Report of Arvind Ltd and found they invested 126CR in Bigfoot Retail Solutions Private Limited ( Page 294 of Annual Report - FY23)
In Julâ22, news article stated that Arvind Ltd sold AIL to same company Bigfoot Retail Solutions Private Limited for 159 Cr which can be found here
However, when I googled the same name, a company came up with a 1.4 avg rating (266 reviews) on Google of which 90% of reviews claiming it as a fraud company with horrible experience
In short, Arvind Ltd sold AIL to Bigfoot Retail Solutions Private Limited and then invested 126Cr in same business. Can someone help me in making sense out of this transaction ?
It means that Arvind discontinued itâs logistics business and invested in third party logistics brand âShiprocketâ owned by the company Bigfoot Retail Solutions Pvt Ltd.
Wouldnât an equity deal have been a better solution in that case? They realized capital gain, paid taxes on the same, and purchased the equity of the same company
Apologies if the answer to the above is too trivial. I just started my investing journey and might be missing very basic concepts
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