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Why The Share Prices of Arvind Limited Went Down - Amazing Adviser


Why the share prices of Arvind Limited went down?


Hello and welcome to my blog. Today I am going to discuss Arvind Limited and why the share prices of Arvind Limited went down.

On 28th November shares of Arvind Limited fell as much as 71% in a single day. These types of incidents are becoming common day by day. Good examples are Yes Bank, Infibeam, Vakrangee. So why a huge fall? Is there any bad news or anything else, let's discuss.

This huge fall is due to the "demerger" of the company. I won't go in technical term but try to make you understand what is "demerger"? This is basically dividing the firm or company to different and small divisions so that the company can focus on their strength areas. I will definitely write a detailed article about "demerger" in near future to give a full understanding of the concept.




Last year Arvind limited announced demerger and in October 2018 the NCLT had sanctioned this arrangement. So now Arvind limited will be divided into three companies named as Arvind limited, Arvind Fashion limited and Anup Engineering. Now Arvind limited after demerger will primarily focus on textiles business.

So if you had kept the shares of Arvind Limited then now you will get 5 shares of Arvind Fashion and 27 shares of Anup engineering for every share of Arvind limited. For actual valuation, we have to wait for fo the listing of these shares which will be June 2019. So there is not actually bad news or anything rather the distribution of shares and you should not go panic for the price which you are watching now in the market.

If you had any doubt you can ask me in the comment box and I'll try to explain it.


Stay Healthy, Happy Investing.

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