The National Company Law Tribunal (NCLT) has given its approval for Aditya Birla Fashion and Retail Ltd (ABFRL) to merge with TCNS Clothing.
On 2nd August 2024, the NCLT Mumbai Bench listed the Amalgamation (by way of Merger by Absorption) Scheme of TCNS Clothing Co. and Aditya Birla Fashion and Retail and their respective shareholders and creditors for pronouncement of order. The NCLT approved the scheme that the company filed.
“The Hon’ble National Company Law Tribunal, Mumbai Bench had pronounced the Order on 2nd August 2024, approving the aforementioned scheme,” Aditya Birla Fashion and Retail said in a regulatory filing on 16th August. ABFRL said it has received the certified true copy of the abovementioned Order on 16th August.
ABFRL is a firm under the Aditya Birla Group that is involved in the retailing of accessories, footwear, and clothing. The well-known women’s apparel brands W and Aurelia are owned by TCNS Clothing Co Ltd, a publicly traded business.
ABFRL announced in May 2023 that it will pay Rs. 1,650 crore to acquire the majority of TCNS Clothing Co. ABFRL then became TCNS Clothing’s promoter after completing the purchase of a 51 per cent share in the company in September 2023.
The Competition Commission of India (CCI) approved ABFRL’s acquisition of TCNS Clothing Co. in June 2023. The BSE Ltd. and National Stock Exchange of India Ltd. stock exchanges both sent a no objection letter to the merger plan in March 2024, after the CCI’s clearance.
For the quarter ending 30th June 2024, Aditya Birla Fashion and Retail reported a consolidated net loss of Rs. 161 crore. The net loss of the company increased from Rs. 141 crore during the same period last year. When compared to the Rs. 229 crore loss recorded in the March quarter, the loss did, however, shrink.
Year over year (YoY), the company’s revenue increased by 7 per cent to Rs. 3,428 crore in Q1FY25 from Rs. 3,196 crore.
Net profit at a consolidated level was impacted due to continued investments in digital-first fashion brands TMRW and losses in premium ethnic wear brands TCNS, the company said.
