Arvind Fashions Limited has announced that it has entered into a Share Purchase Agreement with Flipkart India Private Limited to acquire the latter’s entire 31.25% shareholding in Arvind Youth Brands Private Limited. Following the completion of this transaction, Arvind Youth Brands will become a wholly owned subsidiary of Arvind Fashions, strengthening the company’s operational and strategic control over the business.
Arvind Youth Brands Private Limited operates in the apparel and retail segment and manages the popular denim and casualwear label Flying Machine. The brand has a strong presence across India through both wholesale and retail channels. For the financial year ended March 31, 2025, Arvind Youth Brands reported a turnover of ₹432.16 crore, underlining its scale and relevance in the domestic fashion market.
The acquisition involves a cash consideration of ₹135 crore and covers 31.25% of the total shareholding of Arvind Youth Brands on a fully diluted basis. This includes one equity share of ₹10 each along with 58,95,852 compulsorily convertible preference shares (CCPS) of ₹100 each. Post-acquisition, Arvind Fashions, together with its wholly owned subsidiary Arvind Lifestyle Brands Limited, will hold 100% ownership in Arvind Youth Brands.
Although Arvind Fashions and Flipkart India are not related parties, Flipkart is considered a related party of Arvind Youth Brands under SEBI regulations. As a result, the transaction qualifies as a related party transaction for Arvind Fashions. The company clarified that its audit committee approved the transaction at its meeting held on December 29, 2025, and that the deal has been executed at arm’s length based on an independent valuation report dated December 24, 2025, issued by B B S R & Associates LLP. The promoter and promoter group of Arvind Fashions do not have any interest in the entity being acquired.
From a strategic perspective, the move is aimed at improving operational efficiency and ensuring enhanced strategic control. As the holding company, Arvind Fashions believes that full ownership of Arvind Youth Brands will allow smoother decision-making, tighter integration, and sharper execution of growth plans for the Flying Machine brand in a highly competitive apparel market.
Arvind Youth Brands was incorporated on February 27, 2020, and has consistently recorded strong revenues over the last three financial years. The company posted a turnover of ₹472.38 crore in FY23, ₹458.24 crore in FY24, and ₹432.16 crore in FY25. Its operations are entirely based in India, catering to a young and fashion-conscious consumer base.
