Titan to acquire entire equity shares by CaratLane for ₹4,621 cr: Report
- Titan enters into share purchase agreement to acquire entire equity shares held by CaratLane for ₹4,621 crore
Jewellery brand CaratLane Trading Pvt Ltd CEO Mithun Sacheti has sold 27% stake to Titan over ₹4,600 crore. According to the Reuters news agency, Tata Group-owned Titan Co on Saturday acquired an additional 27.18% of equity shares in its subsidiary CaratLane for ₹4,621 crore.
Titan has entered into a share purchase agreement to acquire all of the 91,90,327 equity shares held by Sacheti and his family members.
With this, Titan's shareholding in CaratLane to increase from 71.09% to 98.28% on a fully diluted basis.
"CaratLane is a subsidiary of the company and on completion of the aforesaid share purchase would result in an increase in shareholding of the company in CaratLane from 71.09 per cent to 98.28 per cent on a fully diluted basis," according to BSE filing.
Titan's jewellery division had a revenue of ₹31,897 crore for FY 2023, contributing around 88% of the turnover of the company. Its jewellery division is headed by brands such as Tanishq, CaratLane, Zoya and Mia by Tanishq.
CaratLane Trading is an unlisted entity and its turnover in FY23 stood at ₹2,177 crore. It also operates in the manufacture and sale of jewellery.
Titan expects the acquisition to be complete by October 31, 2023, subject to the timely receipt of requisite regulatory approvals from the Competition Commission of India (CCI).
"On acquisition of 27.18% of the shareholding of CaratLane, the company would hold an aggregate of 98.28 per cent of the equity share capital on a fully diluted basis and voting rights in CaratLane," it said.
CaratLane, which was incorporated in September 2007, also has presence in the United States through its subsidiary.
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First Published:19 Aug 2023, 01:03 PM IST
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