RelatedAditya Birla Fashion to raise up to ₹800 crore for TCNS acquisitionAditya Birla Fashion to acquire 51% stake in TCNS Clothing for Rs 1,650 crShares of TCNS Clothing crashed over 19% to Rs 418 in Monday's trade after Aditya Birla Fashion (ABFRL) said it has entered into definitive agreements to acquire a 51% stake in TCNS Clothing, owner of the listed women’s apparel retailer that owns brands such as W, Elleven and Aurelia, for Rs 1650 crore.As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29% stake at Rs 503 per share from public shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51% in TCNS.Post the deal, TCNS will be amalgamated with ABFRL under the merger scheme where public shareholders of TCNS will receive 11 shares of ABFRL for every six shares that they hold in TCNS."With the current price of ABFRL & TCNS & swap ratio for the merger at 1.83, it will be beneficial for the public shareholders of TCNS to tender shares in the open offer at Rs 503 vs swapping shares in the merger process since the merger spread is trading at a discount of -22% taking into account the open offer price of Rs 503," brokerage firm Emkay said."The breakeven price for the public shareholders of TCNS wherein it would become agnostic to either tender shares in the open offer or to acquire ABFRL shares as per the swap ratio in the merger process is Rs 285 – which is 33% higher than the CMP (214) (this may serve as a cap for ABFRL stock price until completion of tendering)," Emkay added.I don't want to see these stories becauseAt 10.11 am, TCNS shares were trading 18.8% lower at Rs 422.5 on BSE. In the last one year, the stock has also lost 47%. Meanwhile, shares of Aditya Birla Fashion and Retail were trading 3% higher at Rs 220.3.Aditya Birla Fashion & Retail (ABFRL) will raise Rs 700-800 crore in debt to help fund the acquisition of TCNS Clothing, a top company official said."For funding, we probably need about Rs 700 to 800 crore through external debt, which we will have to raise... The remaining Rs 800 crore will be funded through internal accruals," Ashish Dikshit, managing director of ABFRL told ET. "Our balance sheet is strong enough to raise that."With this acquisition, ABFRL’s ethnic wear portfolio is expected to reach Rs 5000 crore in the next three years. TCNS had sales of Rs 896 crore during FY22 from 650 exclusive brand outlets and 2,300 large format store outlets.