scorecardresearchTCNS Clothing shares surge over 8% on Tuesday early trade, Here's why

TCNS Clothing shares surge over 8% on Tuesday early trade, Here's why

Updated: 06 Dec 2022, 11:25 AM IST
TL;DR.

  • Shares of TCNS Clothing Co surged over 8% on Tuesday after reports that Aditya Birla Fashion was leading the race to acquire the women's apparel retailer. An open offer for 25% of the company will be made as a result of the acquisition, which could purchase up to 86.

TCNS Clothing

TCNS Clothing

Shares of TCNS Clothing Co Ltd surged over 8% on Tuesday's morning trade as media reports suggested that Aditya Birla Fashion leads the race to acquire the women's branded apparel retailer, which owns brands such as W, Elleven and Aurelia.

According to media sources from November, TCNS Clothing Co's promoter stakes were being considered by Nykaa, Reliance Retail, and Aditya Birla Fashion.

According to ET Retail.com, an open offer for an additional 25% of the company will also be made as a result of the acquisition. The new investor might purchase up to 86.24% of the women's fashion firm for 3,016 crore rupees if the open offer is fully accepted.

Together, the Pasricha family of New Delhi, the retailer's promoters, and PE investor TA Associates own 61.24% of the business.

On the technical front, the stock is trading at high volume of 1.1 million with price gain of 7.37, however, the stock has fallen 31.21% from 52-week high of 888.6 from April 19.

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TCNS Clothing

As the stock has been an underperformer with bounce getting sold, analysts are not very bullish on this counter. They witness stiff resistance around 640 level.

"Today we are witnessing a strong up surge in this counter backed by volume, however such movement was seen on November 16, and November 23 as well. However, follow up move was not seen, and in next few days prices gave away their gains. For the uptrend to trigger , prices need to close above 640 level, till then use bounce to exit longs. On the lower side support is at 580 - 560 range," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

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First Published: 06 Dec 2022, 11:25 AM IST