Flipkart Group has invested Rs 260 crore to pick a minority stake in subsidiary Arvind Youth Brands, the company has said.
Arvind Fashions share price jumped over 3 percent in trade on July 10. The company had a day earlier reported a consolidated net loss for the quarter ended March 2020.
Arvind Fashions reported a consolidated net loss of Rs 208.12 crore for the quarter ended March 2020, impacted by COVID-19 outbreak and subsequent disruptions in the market.
The company reported a net profit of Rs 21.30 crore in January-March quarter a year ago, AFL said in a regulatory filing to the BSE.
Revenue from operations fell 39.22 percent to Rs 710.46 crore during the quarter under review as against Rs 1,168.96 crore in the corresponding quarter a year ago.
Read more: Arvind Fashions reports Q4 net loss of Rs 208 crore
Besides, the company said Flipkart Group has invested Rs 260 crore to pick a minority stake in its subsidiary Arvind Youth Brands. Arvind Youth Brands is Arvind Fashions recently-formed subsidiary, which will own the Flying Machine brand.
The transaction is subject to customary conditions precedent. Metta Capital Advisors acted as the financial advisors to AFL for this transaction.
Read more: Flipkart Group invests Rs 260 crore to pick a minority stake in Arvind Fashions arm
Shares of the company were trading 1.12 percent higher at Rs 171.70 on BSE around 1105 hours.