In a strategic move, Aditya Birla Fashion Retail Ltd (ABFRL) has successfully secured a 51% stake in TCNS Clothing, solidifying its position as a key promoter of the renowned women’s apparel brand. The acquisition marks a significant milestone for ABFRL, signaling its intent to expand its influence in the fashion industry.
ABFRL officially confirmed the acquisition, stating, “The company has acquired 51% of the expanded share capital of TCNS, thereby acquiring control over TCNS.” Following this acquisition, TCNS has transitioned into a subsidiary of ABFRL, making it a material subsidiary as per SEBI Listing Regulations.
This strategic move had been in the pipeline, with the Aditya Birla Group announcing its intention to acquire a majority stake in TCNS Clothing on May 5, in a deal valued at Rs 1,650 crore. The acquisition process involved ABFRL purchasing the founding promoter’s stake in TCNS Clothing through a Share Purchase Agreement (SPA), followed by an open offer.
Under the SPA, ABFRL acquired a total of 1.41 crore equity shares, representing 22% of the expanded share capital of TCNS. Subsequently, following the completion of the conditional open offer and SPA, ABFRL secured an additional 3.29 crore equity shares, thereby achieving a 51% ownership stake in TCNS.
TCNS reported a robust turnover of Rs 1,201.59 crore for the fiscal year ending on March 31, 2023. This strategic acquisition aligns seamlessly with ABFRL’s goal of bolstering its comprehensive fashion portfolio, catering to diverse consumer segments and price points.
In the financial year 2022-23, ABFRL posted impressive revenue of Rs 12,418 crore, firmly establishing itself as India’s foremost billion-dollar pure-play fashion powerhouse. The company boasts an extensive network of 4,008 stores, spread across 33,874 multi-brand outlets, and maintains 6,837 points of sale in department stores across India, as of June 30, 2023.
ABFRL’s brand portfolio includes some of India’s most recognized names such as Louis Philippe, Van Heusen, Allen Solly, and Peter England, along with ownership of the leading fashion retail chain Pantaloons. Additionally, ABFRL serves as a prominent retailer of international brands and has established enduring exclusive partnerships with labels like Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, and Reebok.
This strategic acquisition reinforces Aditya Birla Fashion Retail Ltd’s position as a dominant force in India’s fashion landscape, poised for further growth and expansion.