For Rs 4,621 crore, Titan acquires CaratLane’s remaining 27.18% share

New Delhi: In a statement on Saturday, Titan, part of the Tata Group, said that it has acquired the remaining 27.18 per cent share in its jewellery unit CaratLane from the brand’s creator, Mithun Sacheti and his family for Rs 4,621 crore in cash.

According to a BSE filing, the business intends to enhance its stake in CaratLane, a wholly owned subsidiary, from 71.09 per cent to 98.28 per cent when the share transaction is finalised.

TITAN

To acquire additional 27.18% of Caratlane for 4621 Cr

They already own 71.09% stake in Caratlane

This deal will take their stake up to 98.28%

Values CaratLane at 17000 Cr

Titan first bought 62% in 2016 for 357 Cr, invested 400-450 Cr cumulatively until now#FMCGisLife pic.twitter.com/qOIdqP0RiO

— Mangalam Maloo (@blitzkreigm) August 19, 2023

Titan has committed to buying all 91,90,327 shares of stock owned by Sacheti and his family members.

Titan said, “This is to inform that Titan Company Limited (the Company) has entered into a Share Purchase Agreement today to acquire the entire 91,90,327 equity shares held by the Founder of CaratLane Trading Private Limited (CaratLane) and his family members representing 27.18% of the total paid-up equity share capital of CaratLane on a fully diluted basis.”

Titan entered into a Share Purchase Agreement today to acquire the entire 91,90,327 equity shares held by Founder of CaratLane Trading Private Limited and his family members representing 27.18% of the total paid-up equity share capital of CaratLane on a fully diluted basis. pic.twitter.com/iZJLKYwhPV

— Ashish Gupta (@ashish1367) August 19, 2023

Assuming all necessary regulatory clearances from the Competition Commission of India are granted on schedule, Titan anticipates the transaction will be finalised by October 31, 2023.

Approximately 88% of Titan’s total income in FY 2023 came from its jewellery segment, which generated 31,897 crores. Tanishq, CaratLane, Zoya, and Mia by Tanishq are among its most well-known jewellery lines.

CaratLane Trading is a private company that had a 2,177-crore turnover in FY23. In addition, the company is in the business of making and selling jewellery.

CaratLane, which was officially formed in September 2007, also has a subsidiary in the United States. The Tata Group and Tamil Nadu Industrial Development Corp. established Titan as a watch manufacturer, but it has since expanded into other industries, like jewellery and eye care.