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The shares of TCNS Clothing Co Ltd gained more than 8 per cent in the early hours of Wednesday and were trading at Rs 605 levels. The stocks rallied after a media report suggested that some of the big players in the retail segment such as Reliance Retail, Aditya Birla Fashion, Trent Ltd, and Nykaa are interested to buy major stakes in the company. 

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As per the September 2022 quarter, the promoters of TCNS Clothing hold a 32.25 per cent stake in the company. Apart from this, the other major holder in the company is TA Associates, a private equity firm, with around 29 per cent stake. 

The above-mentioned companies are bidding to acquire the stake of TA Associates. As per the media reports, the talks may also see the promoters of the company selling part or whole of their stake to these companies. Avendus Capital is said to be advising the private equity firm on the stake sale. 

TCNS Clothing Co. Ltd., founded in 1997, is a leading exclusive women’s ethnic/fusion apparel company that offers fashion in a modern retail setting. It includes brands such as W, Wishful, Aurelia, and Elleven. 

In Q2FY23, the company reported a total revenue of Rs 350 crore which increased from Rs 239 crore in the same period a year earlier. Their net profit in the period stood at Rs 7 crore which is a decline from Rs 11 crore in Q2FY22. 

The small-cap company has a market capitalization of Rs 3,743 crore as of November 16th, 2022, and has zero debt on its balance sheet. 

Written by Anoushka Roy


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