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.
Read Next: When Will Nykaa Share Price Go Up?
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.