Arvind Limited, a leading player in the textiles and materials industry, has shared an important update regarding the convening of meetings for its equity shareholders, secured creditors, and unsecured creditors. This update follows an order issued by the Hon’ble National Company Law Tribunal (NCLT), Ahmedabad Bench, dated 8th April 2025. As per this order, the company is required to hold meetings on 30th May 2025, to discuss and approve the proposed Scheme of Arrangement.

Details of the Proposed Scheme of Arrangement

The Scheme of Arrangement involves the transfer and vesting of the Advanced Materials Undertaking of Arvind Limited (referred to as the Transferor Company) to a new entity, Arvind Advanced Materials Limited (referred to as the Transferee Company). The transaction is being proposed as a Slump Sale under the relevant sections of the Companies Act, 2013 (specifically, Sections 230-232), which govern the transfer of business undertakings between companies. This arrangement will affect both the shareholders and creditors of both companies.

Purpose of the Meeting

The meetings are being held to obtain the approval of the equity shareholders, secured creditors, and unsecured creditors for the scheme, which aims to reorganize the company’s operations and allow for the smooth transition of the Advanced Materials business to the new company. The scheme proposes that the business be transferred as a going concern, ensuring continuity of operations post-transfer.

Method of Meeting

In light of the ongoing circumstances, the meetings will be conducted via video conferencing or other audio-visual modes. This virtual arrangement is in compliance with the directives of the NCLT and will ensure that all stakeholders have an opportunity to participate despite physical barriers.

Public Notice of the Meeting

To ensure that the details of the meeting are widely known, Arvind Limited has published advertisements in two major newspapers today, 29th April 2025:

1. The Indian Express (All Editions) in English.

2. Financial Express (Ahmedabad Edition) in Gujarati.

The advertisements announce the convening of the meeting and provide instructions on how to participate in the video-conferenced meeting. These notices are a key part of the process of ensuring transparency and providing stakeholders with the information needed to make informed decisions regarding the scheme.

Management’s Perspective

Krunal Bhatt, the Company Secretary of Arvind Limited, stated, “The convening of these meetings is a significant step in the proposed restructuring process. We remain committed to ensuring a smooth transition of the Advanced Materials Undertaking to the newly formed entity. This restructuring is expected to drive greater focus on the growth and development of both businesses.”

Expected Outcomes and Future Implications

If approved, the scheme will facilitate the slump sale of the Advanced Materials Undertaking, allowing the Arvind Advanced Materials Limited to operate as a standalone business entity. This strategic move is expected to unlock value for both companies by allowing them to focus on their core operations and streamline management structures.

The approval of the scheme will also ensure compliance with regulatory requirements under the Companies Act, 2013, and provide stakeholders with clarity on how the transaction will be executed. Following the completion of the meetings and receipt of necessary approvals, the scheme will proceed to the next stages, including any required regulatory filings and formalizations.

Conclusion

The upcoming meetings of equity shareholders, secured creditors, and unsecured creditors are a pivotal step in Arvind Limited’s journey to reorganize its operations and enhance its operational efficiency. The outcome of these meetings will determine the future of the Advanced Materials Undertaking and its integration into the new company. Stakeholders are encouraged to stay informed and participate in the proceedings, as this Scheme of Arrangement represents a significant restructuring effort for Arvind Limited.

For further details, stakeholders can refer to the published advertisements or visit the official website of Arvind Limited.

Contact Information: For inquiries, please contact Arvind Limited at the provided corporate contacts or visit the official website for further updates.

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