Aditya Birla Fashion and Retail Ltd (ABFRL) said that the National Company Law Tribunal (NCLT) has approved the merger of the company with TCNS Clothing.
The Scheme of Amalgamation (by way of Merger by Absorption) among TCNS Clothing Co. and Aditya Birla Fashion and Retail and their respective shareholders and creditors was listed for pronouncement of order on August 2, 2024 by the NCLT Mumbai Bench wherein NCLT sanctioned the scheme filed by the company.
“The Hon’ble National Company Law Tribunal, Mumbai Bench had pronounced the Order on August 2, 2024, approving the aforesaid Scheme,” Aditya Birla Fashion and Retail said in a regulatory filing on August 16.
ABFRL said it has received the certified true copy of the abovementioned Order on August 16.
ABFRL is an Aditya Birla Group company engaged in the retailing of apparel, footwear and accessories segment. TCNS Clothing Co Ltd is a listed company and the owner of the popular women’s wear brands W and Aurelia.
In May 2023, ABFRL announced the acquisition of a majority stake in TCNS Clothing Co in a deal worth ₹1,650 crore. Subsequently in September 2023, ABFRL completed the acquisition of 51% stake in TCNS Clothing, thereby becoming its promoter.
In June 2023, the Competition Commission of India (CCI) gave its approval to the acquisition of TCNS Clothing Co by ABFRL.
Following the CCI approval, in March 2024, the scheme of merger also received a no objection letter from both stock exchanges – BSE Ltd and National Stock Exchange of India Ltd.
ABFRL Q1 Results
Aditya Birla Fashion and Retail posted a consolidated net loss of ₹161 crore in the quarter ended June 30, 2024. The company’s net loss widened from ₹141 crore in the year-ago period. However, the loss narrowed when compared to ₹229 crore loss reported in March quarter.
The company’s revenue rose 7% to ₹3,428 crore in Q1FY25 from ₹3,196 crore, year-on-year (YoY).
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.
At 1:00 PM, ABFRL share price was trading 0.16% higher at ₹319.70 apiece, while TCNS Clothing shares were trading 0.89% higher at ₹569.75 apiece on the BSE.
