In order to become a promoter of the women’s clothing brand, Aditya Birla Fashion Retail Ltd (ABFRL), a subsidiary of the Aditya Birla Group, announced that it had successfully acquired a 51% share in TCNS Clothing. According to the completion of the Conditional Open Offer and the SPA, “TCNS has become a subsidiary of the Company and will also be a material subsidiary of the Company in accordance with SEBI Listing Regulations,” ABFRL stated in a regulatory filing. “The Company has acquired 51 percent of the expanded share capital of TCNS, thereby acquiring control over TCNS.
ABFRL said earlier in May that it will pay Rs 1,650 crore to buy the bulk of TCNS Clothing. As per the agreement, the business used an SPA and a conditional public open offer to purchase the founding promoter’s stake in TCNS Clothing. According to the SPA, ABFRL bought 1.41 billion equity shares, or 22% of the company’s increased share capital. According to the corporation, after necessary closing adjustments, the total cost to acquire a 22% interest came to Rs. 685 crore.
“In accordance with the SPA, the Company purchased a total of 1,41,95,748 equity shares, or 22% of the Company’s expanded share capital. As a result, following the conditional open offer and SPA close, the firm acquired 3,29,08,325 equity shares in total, making up 51% of TCNS’ increased share capital, according to the company’s filing with the exchange.
According to ABFRL, the acquisition is consistent with the company’s goal of developing a thorough fashion portfolio across consumer groups and price points.
The company TCNS Clothing reported sales of Rs 244.07 crore for the three months that ended on June 30, 2023. During the quarter, it had reported a loss of Rs 36.98 crore.
ABFRL recorded a loss of Rs 161.62 crore for its fiscal first quarter in August, compared to a profit of Rs 94.44 crore for the same quarter in FY23. It reported operating revenue of Rs 3,196.06 crore, a 47% increase from Rs 2,174.76 crore in the first quarter of FY23.
