The Flying Machine brand has been retailing on the Flipkart Group platforms of Flipkart and Myntra for more than 6 years. Through this investment, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points.

The AFL scrip surged 9.48% from its day low of Rs 163.05 in afternoon trade to hit the upper circuit at Rs 178.50 in mid-afternoon trade today.

Further, AFL also announced its March quarter earnings during market hours today. The company posted a consolidated net loss of Rs 204.33 crore in Q4 FY20 as against a net profit of Rs 19.56 crore in Q4 FY19. Net sales declined 39.22% year-on-year (YoY) to Rs 710.46 crore during the quarter. Pre-tax loss in Q4 March 2020 stood at Rs 204.04 crore as against a pre-tax profit of Rs 6.09 crore in Q4 March 2019.

"Arvind Fashions continued its progress on key initiatives during Q4 completing the exit from non-strategic emerging brands and market corrections in trade sales. During January and February, company was on track to meet its internal plan. However, revenue was severely hit in March as Covid19 impacted sales across the channels. This has adversely impacted the reported Q4 FY20 revenues and profitability. After the lockdown, our stores have gradually opened, and currently 75% of our stores are operational", the company said in a statement.

Meanwhile, AFL's board has approved launch of company's rights issue from 29 June 2020 which was earlier deferred in March 2020. The size of the rights issue has also been increased from approximately Rs 300 crore to approximately Rs 400 crore. The rights issue will close on 17 July 2020, AFL said.

Arvind Fashions is India's leading casual and denim player, a lifestyle powerhouse with a strong portfolio of fashion brands catering to consumers across sub-categories and price points.