Aditya Birla Fashion Buys 51% Stake In TCNS Clothing, Becomes Promoter

Aditya Birla Fashion Retail Ltd (ABFRL) has acquired a 51 percent share in TCNS Clothing to become a promoter of the women’s clothing brand.

“The company has acquired 51 percent of the TCNS’s expanded share capital, thereby acquiring control of TCNS”, ABFRL said in a late-night regulatory filing on Tuesday.

According to the SEBI Listing Regulations, TCNS has become a subsidiary of the company, and will also be a material subsidiary of the company.

Aditya Birla Group stated on May 5 that it would buy a majority stake in TCNS Clothing, in a deal worth Rs 1,650 crore.

Given the terms of the agreement, it brought TCNS clothing for Rs 1,650 crore.

As per SPA, ABFRL brought a total of 1.41 crore equity shares accounting for 22 percent of the company’s increased share capital.

“Consequently, post conditional open offer and SPA closing, the company acquired 3.29 crore equity shares, in total, constituting 51 percent of the expanded share capital of TCNS”, the statement reads.

For the fiscal year ending March 31, 2023, TCNS had a revenue of Rs 1,201.59 crore.

“The acquisition is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points”, said ABFRL.

In the fiscal year 2022-23, ABFRL earned Rs 12,418 crore in revenue. “It is India’s first billion-dollar pure-play fashion powerhouse”, the company continued.

As of June 30, 2023, the company had 4,008 stores throughout 33,874 multi-brand outlets in India, with 6,837 points of sales in department stores.

Aditya Birla Fashion Retail Ltd carries some of India’s largest brands, including Louis Philippe, Van Heusen, Allen Solly, and Peter England. It also owns Pantaloons, a leading apparel store business.

It is also an international brand, with long-term exclusive partnerships with Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, and Reebok.

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