Aditya Birla Fashion to acquire 51% stake in TCNS Clothing for Rs 1,650 cr

Aditya Birla Fashion and Retail will acquire 51 per cent stake in ethnic wear brand TCNS clothing, parent company of W, Aurelia, Wishful, Folksong and Elleven for Rs 1,650 crore, the former said in a BSE filing.

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

The deal will take place through acquisition of the founding promoter’s stake through a SPA and a conditional public open offer. This will be followed by a merger between TCNS and ABFRL.

On merger, shareholders of TCNS will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.

With this acquisition ABFRL expects its ethnic wear portfolio to reach Rs. 5,000 crore in the next 3 years.

TCNS Clothing has the largest women’s wear distribution network with 4,100 outlets. 

The company recorded a turnover of Rs 933 crore and its profit after tax stood at Rs 10.58 crore as on December 31, 2022.

As per media reports, retail majors such as Reliance Retail, Nykaa and Trent were also in the race to acquire the popular ethnic wear brand.