The company made the announcement after market hours on Friday, 28 November 2008.Meanwhile, the BSE Sensex was up 139.76 points, or 1.54%, to 9232.74.On BSE, 2.38 lakh shares were traded in the counter. The scrip had an average daily volume of 4.89 lakh shares in the past one quarter.The stock hit a high of Rs 14.40 and a low of Rs 13.50 so far during the day. The stock had a 52-week high of Rs 93.50 on 31 December 2007 and a 52-week low of Rs 12.86 on 20 November 2008.
The stock had underperformed the market over the past one month till 28 November 2008, declining 12.08% as compared to the Sensex's 0.94% rise. It had also underperformed the market in the past one quarter, falling 60.18% as compared to the Sensex's fall of 35.28%.The small-cap textile retailer has an equity capital of Rs 218.98 crore. Face value per share is Rs 10.
The current price of Rs 14.06 discounts its Q2 September 2008 annualised EPS of Rs 0.30, by a PE multiple of 46.86.Arvind, has announced a demerger of its branded apparel business and the retail business under the MegaMart banner into two different wholly owned subsidiaries. The brands business division would be transferred to Arvind Lifestyle Brands and retail business division to Arvind RetailThe demerger is aimed at bringing enhanced financial focus on these entities and look at possible alternatives for fund raising in these vehicles at an appropriate time in the future.
The demerger will be carried out under sections 391 to 394 of the Companies Act along with a proposal for reduction and restructuring of share capital of the three companies viz. Arvind, Arvind Lifestyle Brands and Arvind Retail, Arvind said in a statement.Arvind's net profit fell 84.4% to Rs 1.64 crore on a 6.1% rise in sales to Rs 580.92 crore in Q2 September 2008 over Q2 September 2007.
Arvind, erstwhile Arvind Mills, is one of the leading textile manufacturers in the country. It owns various brands like Flying Machine, Newport and Ruf & Tuf jeans and Excalibur shirts. The company services the entire domestic market besides exporting to neighboring countries.
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