Why TCNS Clothing Shares Are Bleeding Today

Share price of TCNS Clothing was in freefall on Monday after Aditya Birla Fashion announced buying a controlling stake in the company that owns popular women’s wear brand Aurelia and W.

What Happened: TCNS share price slumped over 19% on Monday to hit an intraday low of ₹418.40 after the Aditya Birla Group company confirmed the merger that had been making news since December last year. The company added in a statement, “With this acquisition, we expect ABFRL’s ethnic wear portfolio to reach ₹5000 crore in the next three years.”

See also: What Is Campa Cola’s Share Price And How To Buy?

AB Fashion last week announced that it will be acquiring a 51% stake in the company. The total deal value is ₹1,650 crore. This transaction will occur by acquiring the founding promoter’s stake through a share purchase agreement (SPA) and a conditional public open offer. ABFRL will make a conditional open offer to acquire up to 29% stake from public shareholders and acquire the remaining stake from the founder promoters.

The deal values the apparel company at ₹503/share. The open offer will also be issued at the same price. The price is, however, at a discount of around 3.4% from the stock’s last closing price of ₹520.90.

Price Action: TCNS share price was 19.32% to trade at ₹420.25 in the early hours of trading on Monday.

Take Stock Of The Week Ahead

Get all the latest Share Market trends and news to set you up for the week ahead.

You have successfully subscribed.

Read Next: When Will Nykaa Share Price Go Up?

Posted In: EquitiesMarketsMoversTrading IdeasAditya Birla FashionAditya Birla GroupTCNS Clothing