Aditya Birla Fashion Acquires 51% In TCNS Clothing

Aditya Birla Fashion (ABFRL) has successfully completed its acquisition of a 51 per cent stake in TCNS Clothing, as per a regulatory filing. This acquisition has made TCNS a subsidiary of ABFRL and falls under the category of a material subsidiary according to Sebi Listing Regulations.

The Aditya Birla Group had initially announced the deal on 5 May, which involved acquiring a majority stake in TCNS Clothing for a total of Rs 1,650 crore. ABFRL purchased the stake held by TCNS Clothing's founding promoters through a Share Purchase Agreement (SPA) and followed it up with an open offer.

Under the SPA, ABFRL acquired 1.41 crore equity shares, equivalent to 22 per cent of TCNS's expanded share capital. Subsequently, after completing the conditional open offer and SPA closing, the company gained a controlling 51 per cent stake in TCNS, equivalent to 3.29 crore equity shares.

TCNS reported a turnover of Rs 1,201.59 crore for the fiscal year ending 31 March 2023.

This acquisition aligns with ABFRL's strategic objective of building a comprehensive fashion portfolio that caters to various consumer segments and price ranges.

ABFRL, with a revenue of Rs 12,418 crore for the financial year 2022-23, boasts a significant retail network, including 4,008 stores across 33,874 multi-brand outlets and 6,837 points of sale in department stores across India as of 30 June 2023.

The company's brand portfolio includes well-known names like Louis Philippe, Van Heusen, Allen Solly and Peter England. ABFRL also owns the Pantaloons fashion retail chain and serves as a retailer for international brands through exclusive partnerships with Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok.

Masaba Gupta has also recently announced a tie-up with Aditya Birla Fashion & Retail, further strengthening the company's fashion offerings.