Titan to acquire additional 27.2% in CaratLane for ₹4,621 crore to raise stake to 98.28%
The Hindu
Titan acquires additional 27.18% stake in CaratLane, taking total holding to 98.28%. Cost of acquisition is ₹4,621 crore. Acquisition to be completed by Oct '23, subject to CCI approval. CaratLane started as online brand in '08, witnessed substantial growth in partnership with Tanishq. Titan has expanded into lifestyle brands across product categories. FY23 turnover of CaratLane was ₹2,177 crore. Titan's jewellery division registered ₹31,897 crore in FY23. Titan's acquisition of CaratLane to strengthen presence in jewellery market.
Jewellery maker Titan on Saturday announced increasing stake in its subsidiary and new-age jewellery brand CaratLane to 98.28% by acquiring an additional 27.18% share for ₹4,621 crore.
The Tata group-managed firm has entered into a share purchase agreement with CaratLane founders — Mithun Sacheti and Srinivasa Gopalan — and their family members to acquire all the shares held by them representing 27.18%, taking its total holding to 98.28%, said a joint statement.
"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% to 98.28%t on a fully diluted basis," it said.
Over the cost of the acquisition, Titan said it will pay "₹4,621 crore towards the purchase of 27.18% equity shares of CaratLane on a fully diluted basis".
CaratLane Trading is an unlisted entity and its turnover in FY23 stood at ₹2,177 crore. It also operates in the manufacturing and sale of jewellery.
Titan expects the acquisition to be completed 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.
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