Analysts warned of short-term profitability risks for Aditya Birla Fashion and Retail (ABFRL) with its most recent purchase, and the street rejected the agreement between ABFRL and TCNS Clothing.
Shares of the Aditya Birla group company fell 6.2% on the stock exchange during intraday trading before falling 3.27 percent to R 207.2. Those of TCNS, on the other hand, fell 20% to close at Rs 416.64. The benchmark indices, in contrast, rose 1.2%.
The collapse follows Aditya Birla Fashion and Retail’s (ABFRL) announcement last week that it will pay Rs 1,650 crore to purchase a controlling (51% ownership) stake in TCNS Clothing.