Mumbai : Mandhana Industries Limited (“MIL” or “the Company”) (BSE Code: 533 204, NSE: MANDHANA), leading manufacturer of textile and garments announced today the demerger of its Retail Business into an independent entity, namely, Mandhana Retail Ventures Limited (“MRVL”).
The Board of Directors of MIL (the Board), taking into consideration the recommendations made by the Audit Committee, M/s. SSPA & Co., Chartered Accountants, the Valuer and Fairness Report of ‘Emkay Global Financial Services Limited’, Category I registered Merchant Banker, approved the demerger of retail business into an independent entity, namely, MRVL.
The Board is of the view that considering the overall functioning of retail industry, it is proposed to divest the retail division of MIL into MRVL for more focused and concentrated efforts in developing the brand and business reputation. As consideration for the demerger (technically called a vertical split), every shareholder of MIL holding three (3) equity shares of Rs. 10/- (rupees ten each) will receive two (2) equity shares of Rs. 10/- (rupees ten each) of MRVL. The Retail Business is significantly different from the textile stream, in terms of investments into product development, talent and sales & distribution.
The Company will be filing the Scheme of Demerger with the stock exchanges and the High Court as per extant regulations. After demerger and subject to approval from regulatory authorities and shareholders, the Retail Business comprising of Being Human brand and other brands will be known as MRVL.
Manish Mandhana, Joint Managing Director, Mandhana Industries Limited said, “The demerger is a decision cohesively taken by the Board in order to align the focus of Mandhana Retail Ventures Limited to the retail business. Given the success of Being Human clothing brand, we are now looking forward to increasing the portfolio of brands and new retail concepts that the company would introduce considering the robust growth in consumerism in our country especially amongst the youth which is the key driver of our economy.”
source : Sachin Murdeshwar