By C. Perera, JadeTimes News
The National Company Law Tribunal has approved the merger of Aditya Birla Fashion and Retail Ltd with TCNS Clothing. On 2nd August 2024, the Mumbai Bench of NCLT listed the Amalgamation Scheme between TCNS Clothing and ABFRL, along with their shareholders and creditors, for order pronouncement. The scheme was subsequently approved by the tribunal, as confirmed by a regulatory filing from ABFRL on 16th August, after receiving the certified true copy of the order.
ABFRL, part of the Aditya Birla Group, operates in the retail sector, dealing with clothing, footwear, and accessories. TCNS Clothing Co. Ltd, a publicly listed company, owns popular women’s clothing brands W and Aurelia. In May 2023, ABFRL announced its intent to acquire a majority stake in TCNS Clothing for Rs. 1,650 crore, and by September 2023, it became the promoter of TCNS after acquiring a 51% share. The merger was further cleared by the Competition Commission of India (CCI) in June 2023, with BSE and NSE granting no objection letters in March 2024.
For the quarter ending 30th June 2024, ABFRL reported a consolidated net loss of Rs. 161 crore, an increase from Rs. 141 crore in the same period the previous year, though an improvement compared to the Rs. 229 crore loss recorded in the March quarter. Despite this, revenue grew 7% year over year , reaching Rs. 3,428 crore in Q1FY25 compared to Rs. 3,196 crore the prior year. ABFRL attributed its net losses to ongoing investments in digital-first fashion brand TMRW and losses from its premium ethnic wear brand TCNS.
