Birla co to buy Aurelia owner for Rs 1,650cr

Mumbai: Aditya Birla Fashion Retail (ABFRL) has inked an agreement to acquire publicly listed TCNS Clothing, owner of ethnic brands like W, Aurelia, Wishful, Folksong and Elleven, for Rs 1,650 crore. ABFRL will first acquire TCNS founder’s stake and will make a conditional open offer to TCNS non-promotershareholders. The apparel maker then plans to merge TCNS into itself.

The value of the founder’s stake and open offer is Rs 1,650 crore for a 51% stake in TCNS, making this one of the largest deals in the Indian fashion space. Over the last five years, ABFRL has built its ethnic portfolio through a series of strategic actions. With this acquisition ABFRL’s ethnic wear portfolio is expected to reach Rs 5,000 crore in three years. ABFRL will make a conditional open offer to acquire up to 29% stake at Rs 503 per share from public shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51% in TCNS.

TCNS will be amalgamated with ABFRL under the merger scheme wherein public shareholders of TCNS (as on effective date) will receive 11 shares of ABFRL for every 6 shares of TCNS that they hold in TCNS. TCNS stock ended Friday’s trade up nearly 5% at Rs 521 on the BSE.

Aditya Birla Group chairman Kumar Mangalam Birla said, “This deal is yet another marker of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy. As India stands on the cusp of a multi-decadal consumption boom, ABFRL is a forerunner in shaping the fashion landscape of our vibrant nation. 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 women’s ethnic brands, we are reinforcing our commitment to ethnic wear, the largest category in the apparel industry. With this acquisition, the fast-growing ABFRL platform is poised for the next phase of transformational growth.”


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