Aditya Birla Fashion to acquire 51% stake in TCNS Clothing for ₹1,650 crore

Published: May 8, 2023
Author: Fashion Value Chain

-By Mansi Suryavanshi.

ABFRL operates 3,468 stores across approximately 28,585 multi-brand outlets with 6,515 points of sale.

Through a share purchase agreement, a conditional public open offer, and a merger, ABFRL will purchase the original promoter’s shareholding.

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 interest will first be acquired by ABFRL through an SPA and a conditional public open offer. The two organizations will then combine 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% share. 

“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 consumer 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 purchase over the following three years.

In order to obtain a total shareholding of 51% in TCNS, ABFRL will launch 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 original promoters. On Friday, TCNS shares on the BSE reached a closing of 520.  

TCNS creates, produces, distributes, and retails a diverse range of women’s branded clothing under several names. Top-wear, bottom-wear, draperies, combo sets, and accessories are among the company’s product offerings, which address a wide range of wardrobe needs for Indian women, including daily wear, casual wear, work wear, and event wear. It offers its goods via a variety of distribution methods and all over India. 

In 29 Indian states and two union territories as of March 31, 2023, it offered its goods through 650+ exclusive brand stores, 2,300+ large format retail outlets, and 1100+ multi-brand outlets. Additionally, it distributes its goods through special brand stores in Nepal, Mauritius, and Sri Lanka. Products are also sold on the brands’ websites in a few particular nations. 

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