The branded apparel business of textile company Arvind Ltd had a promising listing last year. In 15 months, its valuation has fallen to a fifth. What went wrong?
For the Rs 7,142 crore Ahmedabad-based Arvind, a textile company that dates back to pre-Independence India, it was a moment to cherish. After two decades of hibernation since the late 1990s, when it was slowed down by an acquisition strategy seriously gone wrong, the company’s silver-haired chairman Sanjay Lalbhai, 66, was making a big splash. Lalbhai was listing the company’s branded garment company Arvind Fashions Ltd as a separate entity.
The move, five years in the making, couldn’t have had a better beginning. The stock’s price shot up so rapidly on its first day on the exchanges, 8 March 2019, …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai