TA Associates-backed TCNS Clothing explores IPO possibilities

TA Associates-backed TCNS Clothing explores IPO possibilities

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TCNS Clothing IPO

New Delhi-based TCNS Clothing is looking to launch its IPO and has started discussions with investment banks. According to a report by Live Mint, the women’s apparel company plans to launch IPO by the end of the year. However, discussions with investment banks are at an early stage which means TCNS Clothing IPO may also be delayed to next year.

“The company is yet to decide on the stake that it would look to dilute in the offering, and whether it would be a pure primary offering or a mix of primary and secondary share sale,” the report quoted a person with knowledge of the matter.

TCNS Clothing sells women’s apparels under the W, Aurelia and Wishful brands. The company operates through a network of more than 350 exclusive stores spread across India, Mauritius, Sri Lanka and the Middle East. In addition, it also makes use of multi-brand retailers and online portals. As a result, it reaches its potential customers through 1,600 points of sale. The company was started by brothers Onkar and Arvinder Pasricha in 2001.

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TCNS Clothing is backed by US-based private equity firm TA Associates whose India portfolio also includes BillDesk and Shilpa Medicare. TA Associates invested USD140 million in August last year for a significant minority stake.

Solid financial performance to make TCNS Clothing IPO attractive

TCNS Clothing boasts of robust growth in revenues and profits in recent years. TCNS Clothing’s standalone top-line stood at INR590.67 crore (INR5.9 billion) in FY2016, marking a growth of 65% from previous year, according to filings made with the Registrar of Companies (RoC). Similarly, its profits for FY2016 surged more than 100% to INR62.51 crore. Companies with solid financial performance are often in demand in the primary market and this robust show will likely make TCNS Clothing IPO a hit offer when it is launched.

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