Aditya Birla Fashion and Retail Ltd., part of the Aditya Birla Group has become the promoter of TCNS Clothing Ltd. after completing the conditional open offer.
Under the open offer, Aditya Birla Fashion has acquired 22 percent stake from promoters and promoter group of TCNS Clothing, i.e. Arvinder Singh Pasricha, Onkar Singh Pasricha, Saranpreet Singh Pasricha and Parmeet Pasricha for a total consideration of Rs 685 crore.
With this purchase, Aditya Birla Fashion now owns 51 percent stake in TCNS and the latter will now become a material subsidiary of the company.
"The acquisition is in line with the company's objective of building a comprehensive fashion portfolio across consumer segments and price points," Aditya Birla Fashion said.
In May this year, Aditya Birla Fashion had announced that it will acquire a controlling stake in TCNS Clothing, which owns leading ethnic brands like W, Aurelia, Wishful, Folksong, and Elleven. The overall consideration for the 51 percent stake was said to be Rs 1,650 crore, making it one of the largest deals in the Indian fashion space.
Public shareholders of TCNS (as of effective date) are supposed to receive receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.
Aditya Birla Fashion has also acquired stakes in Indian luxury designers like Sabyasachi, Tarun Tahiliani, Masaba Gupta, among others over the last few years. With this acquisition, its ethnic wear portfolio is likely to reach Rs 5,000 crore in the next three years.
The Competition Commission of India had approved the transaction on June 27, 2023.
As of financial year 2023, TCNS Clothing had overall turnover of Rs 1,201 crore compared to Rs 896 crore in financial year 2022.
Shares of Aditya Birla Fashion are down 25 percent so far in 2023, while those of TCNS Clothing are down nearly 32 percent.
First Published: Sept 27, 2023 5:47 AM IST
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