24 July 2023, Mumbai
In a recent development, TCNS Clothing, a renowned women's apparel company, has received a show cause notice from SEBI under Rule 4(1) of SEBI (Procedure for holding of Enquiry and Imposing Penalty Rules), 1995.
Show Cause Notice
The notice alleges a violation of Regulation 26(6) of SEBI (Listing Obligation and disclosure requirements), 2015, as stated in a regulatory filing by the company. While TCNS Clothing reassures stakeholders that there will be no operational impact, a monetary penalty may be imposed depending on the outcome of the regulatory investigation.
About Brand
TCNS Clothing, known for its brands W, Aurelia, Wishful, Elleven, and Folk Song, not only offers a diverse range of clothing but also markets footwear, jewelry, and beauty products. Additionally, the company is actively involved in wholesale cash and carry trading, including sales through franchisee outlets.
Background
Earlier this year, the Competition Commission of India (CCI) approved the acquisition of TCNS Clothing by Aditya Birla Fashion and Retail Limited (ABFRL).
This acquisition, involving 51% of the expanded share capital, adds to ABFRL's portfolio of branded products encompassing apparel, footwear, and accessories sold through various retail channels and online platforms.
ABFRL, being part of the renowned Aditya Birla group of companies, is a listed entity with significant experience in the retail industry.
