Mandhana Industries Ltd, a Mumbai-based textile and garment manufacturing company, has received its board's approval for the demerger of company’s retail and trading business which holds the licence for the brand Being Human into a separate entity Mandhana Retail Ventures Ltd (MRVL), as per a stock market disclosure.
Being Human brand is licensed by a charitable trust under the same name set up by Bollywood actor Salman Khan.
MRVL was incorporated in 2011 with the intent that the retail operations pertaining to brand Being Human will be carried out in this company. However, later on it was decided that the retail operations for the brand Being Human will be carried out as a division of Mandhana Industries Ltd.
Now it is being spun off into a separate firm, which is proposed to be listed after a vertical demerger.
As per the demerger agreement, every shareholder of MIL holding three equity shares of Rs 10 each will receive two equity shares of Rs 10 per share of MRVL.
The proposed demerger is based on recommendations by valuation by SSPA & Co., Chartered Accountants and fairness report of Emkay Global.
“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," said Manish Mandhana, joint MD, Mandhana Industries.
MIL, a diversified textile and apparel manufacturing firm, got listed in 2010. Its business includes designing, yarn designing, yarn dyeing, weaving, processing, dyeing and garment manufacturing. The firm had revenues of Rs 1,517 crore with net profit of Rs 59.24 crore for the year ended March 31, 2014.
Shares of Mandhana Industries closed at Rs 287.80 each, down 3.07 per cent on BSE in a weak Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)