Aditya Birla Fashion to buy 51% stake in TCNS Clothing

Aditya Birla plans to acquire up to 29 per cent shares from public shareholders at Rs 503, and the remainder will be acquired from the founders, bringing the company's overall shareholding to 51 per cent.

Within three years, ABFRL's ethnic wear portfolio is expected to reach Rs 5,000 crore.

The Aditya Birla Group announced that it will acquire a 51 percent stake in TCNS Clothing, which owns brands like W, Aurelia, Wishful, Folksong, and Elleven.

According to a filing on Friday, the company will acquire the founding promoter's stake through a SPA and conditional public offer followed by a merger between the two entities.

By making a conditional offer, ABFRL plans to acquire up to 29 per cent from the public and the remaining stake from TCNS' founders for an overall shareholding of 51 per cent.

As a result, TCNS will be merged with ABFRL under a merger scheme whereby the public shareholders of TCNS will receive 11 shares of ABFRL for each 6 shares they hold in the former company.

“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, Aditya Birla Group, said.

This acquisition will expand ABFRL's ethnic wear portfolio to Rs 5,000 crore in three years. The company is promoted by Arvinder Singh Pasricha, Onkar Singh Pasricha, Saranpreet Pasricha & Parmeet Pasricha.