Arvind Fashions Limited (AFL) announced a key strategic move on December 29, 2025, by entering into a Share Purchase Agreement (SPA) with Flipkart India Private Limited. Under this agreement, AFL will acquire Flipkart’s entire stake in Arvind Youth Brands Private Limited (AYBPL), strengthening its control over one of its core youth-focused fashion businesses.
Key Details of the Acquisition
Stake Acquisition and Ownership Change
AFL will acquire Flipkart’s full 31.25% shareholding in AYBPL on a fully diluted basis. Upon completion of the SPA and related formalities, AYBPL will become a wholly owned subsidiary of Arvind Fashions Limited.
Transaction Value and Structure
The total consideration for the acquisition is ₹135 crore, which will be paid entirely in cash. The deal includes the purchase of one equity share along with 5,895,852 Compulsory Convertible Preference Shares (CCPS) held by Flipkart.
About the Target Company: Arvind Youth Brands
Arvind Youth Brands Private Limited (AYBPL) operates in the wholesale and retail segment of apparel and accessories under the popular youth brand “Flying Machine.” The brand enjoys strong recognition across India, especially in the denim and casual wear space.
In terms of financial performance, AYBPL’s turnover has shown a gradual decline over the past three financial years:
FY 2022–23: ₹472.38 crore
FY 2023–24: ₹458.24 crore
FY 2024–25: ₹432.16 crore
Strategic Rationale Behind the Deal
As the existing holding company, Arvind Fashions is increasing its stake to gain full operational control over AYBPL. Complete ownership is expected to improve decision-making speed, operational efficiency, and long-term strategic alignment, particularly important for revitalizing and scaling the Flying Machine brand.
Governance, Valuation, and Regulatory Compliance
The transaction has been executed on an arm’s length basis, supported by a valuation report issued by BB S R & Associates LLP dated December 24, 2025.
Although Arvind Fashions and Flipkart are not directly related parties, the transaction is classified as a related party transaction because Flipkart is a related party to AYBPL. Accordingly, the Audit Committee of Arvind Fashions Limited approved the transaction on December 29, 2025, ensuring compliance with corporate governance norms.