Asian Journal of Management Cases, Ahead of Print.
This case sheds light on various aspects, including valuation, promoter holdings and shareholding patterns, concerning the pre- and post-demerger phases of Arvind Ltd. It serves as an educational tool for students to grasp the significance of demergers within the realm of corporate restructuring. Moreover, it equips them with the ability to analyse spin-offs, split-ups or split-offs as specific forms of demergers. What makes this case particularly intriguing is its potential to enable students to assess whether the chosen demerger structure and subsequent changes in shareholding patterns can effectively enhance shareholder wealth.