Arvind Fashions Limited announced that the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, has approved the reduction, cancellation, and writing off of the securities premium account of its wholly owned subsidiary, Arvind Lifestyle Brands Limited (ALBL). The approval allows for the adjustment of ₹1,438.79 crore from ALBL’s securities premium account against its accumulated losses of the same amount. This move is an internal capital restructuring and does not impact ALBL’s net worth or the consolidated financials of Arvind Fashions.
NCLT Approves Capital Restructuring for Arvind Lifestyle Brands
Arvind Fashions Limited has received approval from the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, for a significant capital restructuring exercise concerning its wholly owned material subsidiary, Arvind Lifestyle Brands Limited (ALBL). The NCLT’s order, dated 4th November 2026, sanctions the reduction, cancellation, and writing off of ALBL’s securities premium account.
Financial Adjustment Details
The approved adjustment involves utilizing ₹1,438.79 crores from ALBL’s securities premium account to offset its accumulated losses, which also amount to ₹1,438.79 crores. This transaction is a purely internal capital restructuring measure, aimed at improving the balance sheet presentation of ALBL by adjusting items within its other equity.
Impact on Arvind Fashions
Arvind Fashions Limited has clarified that this restructuring does not affect the net worth of its subsidiary, ALBL. Furthermore, the company has stated that this internal adjustment will have no implication on the consolidated financial numbers of Arvind Fashions Limited. ALBL is expected to undertake the necessary steps to implement this transaction as per the regulatory requirements and the NCLT’s order.
Disclosure and Record
The detailed disclosure regarding this matter is available on the company’s website at www.arvindfashions.com. The company requests that this information be taken on record by the regulatory bodies.
Source: BSE
