New Delhi: Aditya Birla Fashion & Retail Ltd (ABFRL) on Friday announced about acquiring 51 per cent stake in women’s branded apparel company TCNS clothing, which owns many big brands like W, Aurelia, Wishful, Folksong and Elleven, for Rs 1,650 crore.

As per the deal, ABFRl is to obtain TNCS Clothing’s founding promoter’s stake through a SPA (Sale and Purchase Agreement), after which a conditional public open offer followed by a merger between the two entities, said by companies in a joint statement.

Aditya Fashion said that it will make a conditional open offer to capture up to a 29 per cent stake at Rs.503 per share from public shareowners of 51 per cent in TCNS.

TCNS Clothing’s turnover for the financial year which ended on March 31, 2022, was Rs.896.05 crore. Whereas ABFRL generated revenue of Rs. 8,136 crore for the financial year which ended on March 31, 2022, happens to be Indias’s first billion-dollar pure-play fashion powerhouse with this merger.

The giant fashion house has a network of 3,468 stores and a presence at 6,515 points of sale in the department throughout India, as on March 31, 2022.

“The acquisition is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points,” the statement further added.

The deal is to be completed within 9-12 months. In consequence, TCNS will be merged with ABFRL under the merger scheme in which public shareholders of TCNS(as of the effective date) will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.

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“The TCNS deal is indeed a significant milestone as it complements our existing portfolio of exceptional brands across the entire spectrum of Indian fashion. By embracing TCNS’s portfolio of loved women’s ethnic brands, we are reinforcing our commitment to ethnic wear, the largest category in the apparel industry,” Kumar Mangalam Birla, Chairman, of Aditya Birla Group, said.

As this merger happens, ABFRL’s ethnic wear portfolio is anticipated to touch Rs.5,000 crore in the upcoming 3 years.
TCNS’s sale for the financial year 2022 was Rs.896 crore.

What is ABFRL?

Arvind Singh Pasricha, Onkar Singh Pasricha, Saranpreet Pasricha and Parmeet Pasricha are the company’s promoters.

The Aditya Birla Fashion & Retail (ABFRL) was created by The Aditya Birla Group by combining apparel-making Madura Fashion, a Lifestyle division from Aditya Birla Nuvo (ABNL) and Pantaloon in 2015. Its huge annual sales figure is about Rs.8,136 crore.

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It holds 3,200 stores for brands like Louis Philippe, Van Heusen, Allen Solly and Peter England. The company also has a women’s fashion brand Forever21.

In previous years the company has already taken stakes in Indian luxury designers like Sabyasachi, Tarun Tahiliani, and Masaba Gupta.

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