Arvind Ltd stock hits fresh 52-week low after shares turn ex-date before demerger

The Arvind Ltd stock fell in early trade today after its shares turned ex-date for the proposed demerger of its brand apparel business and engineering business. The stock hit a fresh 52 week low of 90.25 in trade today , falling 17.88% on the BSE.

The mid cap stock has lost 76.91% since the beginning of this year and fallen 76.65% during the last one year.

13 of 17 brokerages rate the stock "buy" or 'outperform', two "hold"  and two "underperform", according to analysts' recommendations tracked by Reuters.

It later recovered to Rs 104.75 down nearly 4.69% compared to its previous close of 109.90.

The textile company will demerge its business into Arvind Fashion  Ltd  (AFL) and Anveshan Heavy Engineering Limited (AHEL) on November 29.

All equity shareholders of the firm will be entitled for allotment of (One) fully paid up equity share of Rs 4 each of AFL for every Rs 5 equity shares of Rs 10 each held in Arvind ; and 1 fully paid up equity share of Rs 10  each of AHEL for every 27 equity shares of INR 10 (Indian Rupees Ten) each held in Arvind.

Arvind Fashions and Anveshan may also get independently listed in early January.

The Ahmedabad bench of (National Company Law Tribunal ) NCLT had cleared scheme of demerger of branded apparel business and engineering business of Arvind into Arvind Fashions and Anveshan Heavy engineering in October this year.

Arvind's branded apparels business comprises licensed international brands such as Tommy Hilfiger, Calvin Klein and US Polo Association.

Arvind Ltd's principal products/services are finished fabrics and garments. Its segments are textiles; brands and retail; real estate, and others. The textiles segment includes fabric, yarn and garments. The Brands and Retail segment includes retailing of branded garments, apparels and fabrics. The Real Estate segment includes real estate development.

The others segment includes electronics, technical textile, construction, e-commerce and project activity. It also manufactures cotton shirting, denim, knits and bottom weights (Khakis) fabrics, and jeans and shirts garments.