Business

Aditya Birla Fashion to Acquire 51% Stake In TCNS Clothing

The owner of ethnic brands such as W, Aurelia, Wishful, Folksong, and Elleven, TCNS Clothing, has gone into binding agreements to be acquired by Aditya Birla Fashion and Retail (ABFRL). There will be two parts to this transaction. The initial promoter’s stake will first be acquired by ABFRL through an SPA and a conditional public open offer. The two organisations will then merge after this.  One of the largest transactions in the Indian fashion industry, the value of the promoter holding and open offer consideration for TCNS is 1,650 crore for a 51% stake.

“This deal is yet another indicator of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy,” said Kumar Mangalam Birla, Chairman of the Aditya Birla Group. ABFRL is a pioneer in reshaping the fashion scene in our lively country as India prepares for a multi-decade consumption boom. The TCNS purchase is a big milestone for ABFRL since it expands our already impressive portfolio of top brands in every segment of Indian fashion.

ABFRL has developed its ethnic portfolio over the past five years by taking calculated, deliberate steps. The ethnic wear portfolio of ABFRL is anticipated to grow to 5,000 crore with this acquisition over the following three years. In order to obtain a total shareholding of 51% in TCNS, ABFRL will make a conditional open offer to purchase up to a 29 percent stake from public shareholders at a price of 503 per share. The remaining stake would be purchased from the founder promoters. On Friday, TCNS shares on the BSE reached a close of 520.

Under the terms of the merger agreement, TCNS and ABFRL will be combined. As of the merger’s effective date, TCNS’s public shareholders will get 11 shares of ABFRL for every 6 they now own of TCNS. The acquisition is subject to the standard regulatory approvals from the National Company Law Tribunal, SEBI, the Competition Commission of India, and stock exchanges.

Malika Sahni

Recent Posts

‘In Kabul, A Cat Has More Freedom Than A Woman’: Revisiting Women’s Struggles Under The Taliban

The Taliban’s regime has since imposed over 100 laws restricting women's rights, stripping them of…

5 hours ago

PM Modi’s Gifts: A Glimpse Of India’s Cultural Heritage In Global Diplomacy

These gifts to world leaders reflect the diverse traditions, arts, and crafts of India, emphasizing…

8 hours ago

Dr Rajeshwar Singh Calls For Bold Goals To Make India A Global Power By 2047

Dr Singh stressed the importance of reaching a GDP of $15 trillion by 2047 to…

8 hours ago

Gautam Adani Faces Indictment In US: Legal Expert Vijay Aggarwal Dismisses Immediate Repercussions

Criminal lawyer Vijay Aggarwal weighed in on the charges against Adani. He believes the indictment…

8 hours ago

Adani Group Stocks Recover As Sensex nd Nifty Post Gains

After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…

10 hours ago

Sensex Soars 1,961 Points, Nifty Gains 557 In Broad-Based Market Rally

A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…

10 hours ago