For TCNS acquisition, ABFRL to raise up to Rs. 800 crore

 To help fund the acquisition of TCNS Clothing, Aditya Birla Fashion & Retail (ABFRL) will raise Rs. 700-800 crore

As per media reports, Ashish Dikshit, MD of the company said that for funding, the company  probably needs about Rs. 700 to 800 crore through external debt, which the company will have to raise. The remaining Rs. 800 crore will be funded through internal accruals.

ABFRL has agreed to buy 51 per cent stake in TCNS for Rs. 1,650 crore.

TCNS had sales of Rs. 896 crore during FY22 from 650 exclusive brand outlets and 2,300 large format store outlets.

With this acquisition, ABFRL’s ethnic wear portfolio is expected to reach Rs. 5,000 crore in the next three years with TCNS contributing about Rs. 2,000 crore.

A report by Antique Stock Broking says that while the overall apparel market is largely unorganised, within the branded apparel space, retail share of women’s wear is expected to increase to 35 per cent by FY25 from 31 per cent in FY20.

Ashish said that it is a very fragmented market if you look at mid to lower part of the market. But in the premium side, I don’t see too many brands of large size. Also, we have not just got a very strong asset in terms of the brand and distribution, we also got a management team which has consistently delivered over a long period of time.