TCNS Clothing shares crash 19% as Aditya Birla Fashion to acquire majority stake

Aditya Birla Fashion & Retail’s acquisition of a 51% stake in TCNS Clothing has led to a 19% drop in the latter’s stocks. ABFRL aims to acquire the remaining shares in a merger with TCNS, which will offer public shareholders 11 ABFRL shares for every six TCNS shares they hold. Emkay has suggested that due to the current price of the stocks and the swap ratio for the merger at 1.83, it will be more beneficial for public shareholders of TCNS to tender their shares in the open offer at Rs 503 per share than to swap them.