TA-backed TCNS files for India IPO

According to a prospectus, the offer will comprise up to 15.7 million existing shares, including 6.9 million shares held by TA. No new shares will be sold and pricing terms have yet to be set. TA has 24.9 million shares in total, or a 44% stake.

TCNS manufactures a wide array of women’s branded apparel. Its three brands are W, which offers clothing based on Indian and western styles; Aurelia, a contemporary casual and business ethnic wear brand; and Wishful, which produces clothing for formal occasions. The company has 418 exclusive brand outlets in India and six across Nepal, Mauritius and Sri Lanka. It also sells products through more than 2,600 large-format and multi-brand outlets.

TCNS sees one of its main competitive strengths as its thorough market research that shapes its design and marketing strategies. The company also prides itself on its sourcing network, through which it collects fabrics and trim materials from 160 suppliers across India, and its strong quality control and inspection regime.

For the year ended March 2017, TCNS reported INR7.1 billion ($110 million) in revenue, up from INR4.9 billion the previous year. Over the same period, net profit grew from INR491 million to INR891 million.

TA invested in TCNS in August 2016, committing INR9.3 billion. The firm’s purchase included a stake of about 20% held by Matrix Partners India, which had invested INR600 million in the company’s first institutional funding round in 2011.

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• Topics
• South Asia
• Consumer
• IPO
• India
• manufacturing
• TA Associates
• Exit