Small-Cap Marvel: Game Changing Merger as Company Joins Forces with Aditya Birla Group!

The value of the promoter stake and open offer consideration for this small-cap company is Rs 1,650 crore for a 51 per cent stake.

TCNS, India’s leading women’s ethnic-focused fashion player, announced today that it has entered into definitive agreements for combining with Aditya Birla Fashion and Retail Limited (ABFRL), India’s leading fashion & apparel company and a part of the Aditya Birla group.  

The transaction entails a combination of TCNS into ABFRL and will be carried out through ‐ The Acquisition of the founding promoter’s stake through a SPA and a conditional public open offer followed by a Merger between the two entities. The value of the promoter stake and open offer consideration for TCNS is Rs 1,650 crore for a 51 per cent stake, making this one of the largest deals in the Indian fashion space.   

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As part of the transaction, ABFRL will make a conditional open offer to acquire up to a 29 per cent 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 per cent in TCNS. Pursuant to the above, TCNS will be amalgamated with ABFRL under the merger scheme wherein public shareholders of TCNS will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS. 

TCNS Clothing Company Ltd is India’s leading women’s branded apparel company. The company designs, manufactures, markets and retails a wide portfolio of women’s branded apparel and accessories across multiple brands. The company reported positive numbers in its Quarterly Results.  

On Monday, shares of TCNS Clothing Ltd plunged 20 per cent lower circuit to Rs 416.65 per share from its previous closing of Rs 520.80. The stock has a 52-week high of Rs 858.65 and a 52-week low of Rs 414.90. The shares of the company saw a spurt in volume by more than 6.35 times on BSE. 

Investors should keep an eye on this small-cap stock.