Shares of Arvind Fashions hit the upper circuit of 5 per cent at Rs 621 apiece on the BSE on Friday. The stock of Lalbhai Group company opened at Rs 592 on first day of its listing and ended the day at Rs 621 levels.
Arvind Fashions is the demerged entity of the flagship denim maker Arvind and comprises international brands such as Tommy Hilfiger, Calvin Klein and US Polo Association. It's branded apparel undertaking and engineering undertaking was transferred to Arvind Fashions and Anup Engineering (formerly Anveshan Heavy Engineering), respectively. Shares of Anup Engineering got listed on March 1.
As per the notice, shareholders of Arvind Fashions got one fully paid up equity share of Rs 4 each for every 5 shares held in Arvind and Anveshan Heavy Engineering’s shareholders got one fully paid up equity share of Rs 10 each for every 27 shares held in Arvind.
Arvind had said the demerger will allow each business to have a sharper focus on developing their own aggressive growth models, on making their own capital allocation decisions and on incentivising their teams. This sharper focus will enable businesses to create long-term shareholder value.