TCNS Clothing gains 2% after Aditya Birla Fashion and Retail gets acquisition nod

Shares of TCNS Clothing gained over 2 percent on June 28 after the Competition Commission of India (CCI) gave the green light to its acquisition by Aditya Birla Fashion and Retail.

“The proposed combination involves acquisition of 51 percent of the expanded share capital of the target TCNS Clothing Co Limited by the acquirer Aditya Birla Fashion and Retail Limited,” the competition watchdog said in a press release.

At 9:21am, shares of the company were up 1.4 percent at Rs 420.4 on the BSE. The stock is merely 6 percent away from its 52-week low and 43 percent away from 52-week high.

The share price had plunged when the company had said in early May that Aditya Birla Fashion & Retail would be acquiring controlling stake in the company and will launch an open offer to acquire additional stake.

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What had driven shareholders to the edge was that after the 51 percent acquisition, TCNS will be amalgamated with Aditya Birla Fashion & Retail under the merger scheme and public shareholders of TCNS will receive 11 shares of Aditya Birla Fashion & Retail for every 6 shares that they hold in TCNS.

Though the CCI said that a ‘detailed order’ will follow soon.

Aditya Birla Fashion and Retail Ltd is a listed company and a part of the Aditya Birla conglomerate. It is engaged in retailing of branded products within the apparel, footwear and accessories segment, through its retail stores, online retail platforms and e-commerce marketplaces. While TCNS Clothing is a listed company engaged in the business of manufacturing, distribution and sale of women’s apparel, jewellery, footwear, and beauty products, currently undertaken under the brands i.e., W, Aurelia, Wishful, Elleven and Folk Song.

In the March quarter, standalone net sales came in at Rs 268.56 crore against Rs 234.42 crore in March 2022.

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