TBZ Shares Hit Record High, Log Best Week in Six Years After GRT Jewellers Stake Acquisition Deal
Key Takeaways
- •GRT Jewellers agreed to acquire a 74.12% stake in TBZ from its promoters at ₹209 per share, valuing the transaction at approximately ₹1,033.7 crore.
- •GRT Jewellers will make an open offer for additional TBZ shares at ₹249.60 per share, a price higher than the promoter deal as required by SEBI's takeover code.
- •TBZ shares surged to a record high and delivered their strongest weekly performance since 2019 following the deal announcement.
- •The transaction would combine two family-run jewellery retailers with roots in western and southern India, representing consolidation in the organised jewellery retail sector.
- •The deal remains contingent on customary regulatory approvals and completion of the open offer process.
Shares of Tribhovandas Bhimji Zaveri (TBZ) surged to a record high and recorded their best weekly performance in six years following the announcement of a stake acquisition by GRT Jewellers.
GRT Jewellers entered into a share purchase agreement with TBZ's promoters to acquire a 74.12% stake in the company at ₹209 per share, valuing the transaction at approximately ₹1,033.7 crore. In addition, GRT Jewellers plans to make an open offer for a further stake in TBZ at ₹249.60 per share.
Tribhovandas Bhimji Zaveri is one of India's long-established jewellery retailers, tracing its origins to a family business founded in Mumbai in 1864. The company is listed on Indian stock exchanges and operates a network of jewellery showrooms across the country. GRT Jewellers, formally GRT Jewellers (India) Private Limited, is a Chennai-based jewellery retailer with a significant presence in southern India. The transaction, if completed, would combine two family-run jewellery businesses with roots in western and southern India respectively, marking a notable instance of consolidation in India's organised jewellery retail sector, which includes large listed players such as Titan's Tanishq as well as numerous regional chains.
Under Indian takeover regulations, an acquirer purchasing a controlling stake in a listed company is required to make an open offer to public shareholders for an additional portion of the company's equity. The open offer price announced in this transaction, at ₹249.60 per share, exceeds the price of ₹209 per share agreed with TBZ's promoters, a structure consistent with SEBI's takeover code, which bases the offer price on prescribed pricing formulas rather than the negotiated promoter stake price alone.
The deal announcement drove strong buying interest in TBZ shares, pushing the stock to an all-time high and delivering its strongest weekly gain since 2019. The transaction remains subject to customary regulatory approvals and the completion of the open offer process, outcomes that market participants will be watching in the period ahead.
Source: CNBC-TV18
