Superdry PLC on Wednesday said it will establish an intellectual property joint venture in India in collaboration with Reliance Brands Holding UK Ltd, a company that partners with clothing firms and luxury goods sellers.

Superdry shares jumped 27% to 54.90 pence each on Wednesday morning in London.

Superdry, the Cheltenham, Gloucestershire-headquartered clothing retailer, said it will sell its intellectual property assets, including its brand and related trademarks in India, Sri Lanka and Bangladesh to the joint venture vehicle for £40.0 million.

Superdry will hold a 24% stake in the JV, with Reliance Brands holding the remaining 76%.

Superdry anticipates gross proceeds of £30.4 million from the sale. Reliance Brands Ltd, a Mumbai, India-based partner of Superdry since 2012, will oversee brand operations in the three countries.

Superdry plans to use the proceeds to improve its balance sheet and liquidity and fund its ongoing working capital requirements as part of its turnaround plan.

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