Aditya Birla Fashion completes purchase of 51% stake in TCNS Clothing, becomes promoter

27 Sep 2023 , 02:36 PM

Aditya Birla Fashion Retail Ltd (ABFRL) has finished purchasing a 51% stake in TCNS Clothing, becoming a promoter of the women’s clothing company.

‘The company has acquired 51% of the expanded share capital of TCNS, thereby acquiring control over TCNS,’ ABFRL stated in a late-night regulatory statement on Tuesday.

According to SEBI Listing Regulations, TCNS has been admitted as a subsidiary of the company and will also be a substantial subsidiary of the company.

Aditya Birla Group company stated on May 5 that it would pay Rs 1,650 crore to buy the majority of TCNS Clothing.

According to the agreement, it used an SPA (Share Purchase Agreement) and an open bid to purchase the founding promoter’s part in TCNS Clothing.

According to the SPA, ABFRL purchased a total of 1.41 crore equity shares, or 22% of the company’s increased share capital.

Accordingly, following the conditional open offer and SPA close, the business bought 3.29 crore equity shares in total, making up 51% of TCNS’ increased share capital, it added.

The financial year that concluded on March 31, 2023, according to TCNS, saw 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,’ claims ABFRL.

ABFRL reported revenue for the fiscal year 2022–2023 of Rs 12,418 crore. According to the corporation, it is the country’s first billion-dollar pure-play fashion powerhouse.

By June 30, 2023, the business will have a network of 4,008 stores spread throughout 33,874 multi-brand outlets with 6,837 points of sales in department stores throughout India.

The biggest brands in India are represented in its line-up, including Peter England, Allen Solly, Van Heusen, and Louis Philippe. It also owns Pantaloons, a well-known brand of apparel stores.

Additionally, it sells merchandise from other countries and has long-standing exclusive agreements with brands like Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, and Reebok.

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