Apollo Green Spins Off Fashion Division in ₹95 Crore Transfer to Apollo Fashion International

Apollo Green Spins Off Fashion Division in ₹95 Crore Transfer to Apollo Fashion International

Strategic spin‑off: Apollo Green Energy Limited has completed a strategic separation of its fashion business, transferring the entire fashion division to a newly formed entity called Apollo Fashion International Limited (AFIL) under a Business Transfer Agreement valued at ₹95 crore. 

Business focus realignment: The move is intended to sharpen Apollo Green’s focus on its core renewable energy operations while allowing the fashion business to operate independently with a dedicated management structure and growth strategy.  

Assets and liabilities: Under the deal, AFIL took on net assets worth ₹62.66 crore, including property, plant & equipment, inventories and receivables, while also assuming related liabilities such as borrowings and payables, ensuring it inherits a complete operational base of the former division. 

Consideration mix: The ₹95 crore deal consideration was settled through a combination of cash and equity, with Apollo Green Energy receiving both, and was recorded partly as a capital reserve on AFIL’s books, reflecting a premium valuation. 

Shareholding outcome: As part of the business transfer, Apollo Green retained a 37.52% equity stake in Apollo Fashion, and the broader promoter group collectively holds about 77% of AFIL’s equity, maintaining strategic alignment while enabling operational independence. 

Operational continuity arrangements: During the transition, Apollo Green continues to support AFIL in areas such as administrative and supply chain functions until contract novations are complete, with certain sales from AFIL still linked to Apollo Green.  

Investor implications: The carve‑out enables investors to assess the performance and prospects of the energy and fashion businesses separately, with clearer financials and sector positioning for each entity. 

Unlisted share context: Both companies remain unlisted and trade on pre‑IPO platforms, with investor valuations influenced by performance outlooks and sector dynamics. The separation is expected to help both entities attract investor interest aligned with their specific industry narratives. 

Strategic impact: For Apollo Green Energy, the transaction reduces operational complexity and supports a tighter focus on green energy expansion. For AFIL, the standalone structure is designed to strengthen its fashion manufacturing and brand partnerships in domestic and global markets. 

This restructuring reflects a broader corporate trend of unlocking value through business carve‑outs, positioning both Apollo Green and Apollo Fashion for more focused growth and clearer investor propositions.