NCLT to merge ABFRL into TCNS Clothing

20 August 2024, Mumbai

The National Company Law Tribunal (NCLT) has approved the merger of Aditya Birla Fashion and Retail (ABFRL) with TCNS Clothing.

The tribunal approved the Scheme of Amalgamation involving the merger by absorption of TCNS Clothing Co into Aditya Birla Fashion and Retail on Aug 2, 2024. The certified copy of the order was granted to the company on Aug 16, 2024.

A part of the Aditya Birla Group, ABFRL is a retailer of apparel, footwear, and accessories. On the other hand, a listed entity, TCNS Clothing Co is the owner of well-known women’s wear brands such as W and Aurelia.

ABFRL acquired a majority stake in TCNS Clothing Co in May 2023 in a deal valued at Rs1,650 crore. By September 2023, the company acquired 51 per cent stake in TCNS Clothing, thereby becoming its promoter.

The acquisition was approved by the Competition Commission of India (CCI) in June 2023. Following this, the merger scheme received a no-objection letter from both the BSE and the National Stock Exchange of India in March 2024.

In Q1FY25, the consolidated net loss of ABFRL widened to Rs161 crore from Rs141 crore in the same period the previous year. However, the loss narrowed compared to the Rs229 crore loss reported in the March quarter.

The company’s revenue for Q1FY25 rose 7 per cent Y-o-Y to Rs3,428 crore from Rs3,196 crore in the year-ago period.

The consolidated net profit was impacted by ongoing investments in digital-first fashion brands under TMRW and losses in premium ethnic wear brands from TCNS, according to the company.

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