New Delhi: Aditya Birla Fashion and Retail to acquire 51 per cent stake in ethnic wear brand TCNS clothing, parent company of W, Aurelia, Wishful, Folksong and Elleven for Rs 1,650 crore, the former said in a BSE filing.
“The value of the promoter stake and open offer consideration for TCNS is ~ Rs. 1650 Cr. for 51% stake, making this one of the largest deals in the Indian fashion space.”
On merger, shareholders of TCNS will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.
“For ABFRL, 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,” commented Kumar Mangalam Birla, Chairman, Aditya Birla Group.
With this acquisition ABFRL expects its ethnic wear portfolio to reach Rs. 5,000 crore in the next 3 years.
TCNS Clothing has the largest women’s wear distribution network with 4,100 outlets. The company recorded a turnover of Rs 933 crore and its profit after tax stood at Rs 10.58 crore as on December 31, 2022.
As per media reports, retail majors such as Reliance Retail, Nykaa and Trent were also in the race to acquire the popular ethnic wear brand.