V-Mart Retail Limited to acquire certain assets of Unlimited from Arvind Lifestyle Brands Ltd

V-Mart Retail Limited ("VRL" or" Company") has agreed to acquire certain assets of Unlimited from Arvind Lifestyle Brands Ltd ('ALBL'), a wholly owned subsidiary of Arvind Fashions Ltd ('AFL'), vide an Asset Transfer Agreement dated 22nd July 2021 ('Agreement'), subject to completion of customary terms and conditions precedent. The Board of Directors in its meeting held on 21st July 2021 have approved this acquisition.

Unlimited is a brand which is a part of ALBL, a wholly subsidiary of AFL, which operates a chain of 74 value fashion retail stores across South and West India under the brand Unlimited, wherein retails fashion apparel and accessories for men, women and children at affordable prices.

V-Mart has agreed to acquire certain assets of the Unlimited business as part of this transaction.

Assets as specified in the Agreement include fixed assets of all stores and warehouses, leases, identified inventory, contracts, assigned trademarks and goodwill, and other current assets of the Unlimited business ("Assets").

The company wishes to expand its presence in South India and acquisition of the Assets will help V-Mart establish its presence in South India and become a pan-India value fashion retailer.

The acquisition is expected to be completed in about 60 days, on the completion of the conditions precedent as set out under the Agreement.

The Assets are being acquired at their book value, with estimated outlay of about Rs. 150 Crore at closing (completion of acquisition), with certain contingent payments to be made based on certain milestones achieved in these stores, over next few years, post the acquisition.

Shares of V-MART RETAIL LTD. was last trading in BSE at Rs. 3247.95 as compared to the previous close of Rs. 3306.1. The total number of shares traded during the day was 2477 in over 824 trades.

The stock hit an intraday high of Rs. 3290.05 and intraday low of 3186.8. The net turnover during the day was Rs. 8006376.

Source : Equity Bulls

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