Arvind, India's largest textile and branded apparel player, today announced its decision to raise about Rs 7.40 billion by diluting 10% stake in its brand business arm, pegging its enterprise value at Rs 80 billion. The entire stake will be picked up by Multiples, the Private Equity firm founded by Renuka Ramnath.

Arvind's brand portfolio is among the strongest in India and has many power brands that have grown at a phenomenal pace. The business clocked a turnover of Rs 23 billion for the FY 2015-16 and is one of the fastest growing businesses in the country with a CAGR of 25%for the past three years. The unmatched portfolio includes global marquee brands, such as Calvin Klein, Tommy Hilfiger, US Polo Assn, Ed Hardy, Hanes, Arrow, Gant and Nautica, among others.

Sanjay Lalbhai, chairman and managing director of Arvind said, "We are delighted to have Multiples as an investor. This transaction reflects the confidence of the investor community in the overall business strategy, the robustness of the platform and quality of our leadership team. The deal is an important milestone in our journey to be a fashion, apparel and accessories powerhouse."

He further added, "With India becoming the fastest growing economy in the world, we are confident of continuing this growth momentum and taking the business from over Rs 32 billion this year to Rs 90 billion by 2022. This transaction helps Arvind unlock the value that the brands business has accomplished in a short period and add financial muscle to future strategic opportunities for the Group. We will immensely benefit from our association with Multiples."

Shares of the company gained Rs 6, or 1.49%, to trade at Rs 409.60. The total volume of shares traded was 381,417 at the BSE (9.42 a.m., Wednesday).