Shares of TCNS Clothing – which owns popular womenswear brands W and Aurelia – surged around 9% as the markets opened on Wednesday.
What Happened: Shares of the company seem to have been on the up on news that Aditya Birla Fashion Retail (ABFR) looks to acquire a majority stake in the retailer. Motilal Oswal Investment Services in their recent research also mentioned the speculations that ABFR looks to acquire a 51% stake in the clothing brand from promoters and PE investors.
Speculations about a possible acquisition have been rife since last December when media reports suggested that several entities including Nykaa and Reliance Retail were vying for a stake in the company. The company has had a volatile last month at the bourses, as its Q3 earnings missed estimates. However, the stock has seen some recovery as it has jumped around 7% in the past five sessions.
Brokerages also have a mixed view of the stock. ICICI Securities has an ‘add’ rating on the stock with a price target of ₹510, however, HDFC Securities has a ‘reduce’ rating on the stock with a target price of ₹440. In their note, HDFC Securities said that the brand remains the worst-performing company within the apparel pack.
Price Action: TCNS Clothing shares were up 8.29% to trade at ₹494.30 in the early hours of trading on Wednesday.
Get all the latest Share Market trends and news to set you up for the week ahead.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.