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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
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?
Editor's note: 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, that a circuit breaker was triggered and trading halted. By the end of two weeks, the stock had gained 67%, valuing the company at Rs 9,400 crore, or a notional 27% return for early investor Renuka Ramnath, whose private equity firm Multiples Asset Management had acquired a 10% stake in 2016. It’s another matter that a section of investors expected it to open over Rs 1,000. The company’s credentials seemed impeccable. Arvind Fashions—which licenses and sells international apparel brands such …
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