TCNS Clothing rallies 11% amid reports of Reliance Retail, Nykaa eyeing promoter stake

Shares of TCNS Clothing rallied 11% to the day's high of Rs 618.8 on Wednesday after a media report suggested that Reliance Retail and Nykaa are eyeing promoter stakes in the women apparel company.

Reliance Retail, Aditya Birla Fashion, Trent, Nykaa and other private equity investors, including TPG Capital and Advent International, have evinced interest in buying TA Associates’ around 29% stake in TCNS Clothing, according to a media report.

The development may also result in the promoters paring their entire or partial 32% stake, added the reports.

For the stake sale, investment bank Avendus Capital is said to be advising the private equity firm.

The stock of TCNS Clothing in the last one year has fallen close to 25% and is currently trading 35% lower from its 52-week high of Rs 932.55. Rs 686 is the average estimated target price for the stock, shows Trendlyne data.

The company's portfolio of brands includes Wishful - which is a high-end brand, while the other brands included are W, Aurelia and Elleven.

There are a total of nine analyst ratings on the counter, with four suggesting strong buy, two buy, two hold and one strong sell.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)