Aditya Birla Fashion and Retail Ltd (ABFRL) on Friday (March 15) said it has received a no objection letter from BSE Ltd and National Stock Exchange of India Ltd on the scheme of merger of the company and TCNS Clothing Co.
"...we inform that company has received observation letters from BSE Limited and National Stock Exchange of India Limited dated March 14, 2024, and March 15, 2024, respectively in regards to the Scheme of Amalgamation between Aditya Birla Fashion and Retail Limited ('Transferee Company') and TCNS Clothing Co Ltd ('Transferor Company') and their Shareholders and Creditors ('Scheme'), wherein Stock Exchanges have issued 'No adverse Objection' and 'No Objection' on the Scheme," ABFRL said in a regulatory filing.
The effectiveness of the scheme will be subject to the approval of the National Company Law Tribunal and other necessary approvals, as may be required, the company said.
Aditya Birla Fashion and Retail Ltd is engaged in the retailing of branded products, including apparel, footwear and accessories segment. The entity is a listed company and a part of the diversified conglomerate Aditya Birla Group. TCNS Clothing Co Ltd is a listed entity, engaged in the business of manufacturing, distribution, wholesale cash and carry trading and sale of women's apparel.
On May 5, the Aditya Birla Group firm had announced that it would acquire a majority stake in TCNS Clothing in a deal worth ₹1,650 crore. As per the deal, it acquired TCNS Clothing's founding promoter's stake through a SPA (share purchase agreement), followed by an open offer. As per the SPA, ABFRL acquired a total of 1.41 crore equity shares constituting 22% of the expanded share capital of the company.
ABFRL registered a revenue of ₹12,418 crore in the financial year 2022-23. It is India's first billion-dollar pure-play fashion powerhouse, the company said. The company has a network of 4,008 stores across 33,874 multi-brand outlets, with 6,837 points of sales in department stores across India as of June 30, 2023. It has a repertoire of India's largest brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England. It also owns the leading fashion retail chain Pantaloons.
Shares of Aditya Birla Fashion and Retail Ltd ended at ₹207.35, up by ₹6.15, or 3.06%, on the BSE.
