Titan to acquire remaining 0.36% stake in CaratLane for ₹60 crore

Watch and jewellery retailer Titan Company Ltd on Tuesday announced that it acquired the remaining 0.36% stake in CaratLane Trading Private Ltd (CaratLane) for ₹60.08 crore.

With the latest planned acquisition of 1.1 lakh equity shares, Titan will increase its shareholding in CaratLane from 99.64% to 100% of the paid-up capital, making it a wholly owned subsidiary, the company said in a filing to the stock exchanges after the market hours on February 27.

"Titan Company Ltd had executed relevant documents today to purchase a balance of 1,19,489 equity shares held by the individual shareholders of CaratLane Trading Private Ltd representing 0.36% of the total paid-up equity share capital of face value of ₹2 each of CaratLane. The purchase transaction would be completed on fulfillment of other closing conditions," the Tata Group company said.

The transaction is expected to be completed by March 31, 2024, the company informed the stock exchanges.
An unlisted private company, CaratLane is engaged in the manufacturing and sale of jewellery. The company was founded by Mithun Sacheti and Srinivasa Gopalan in 2008.

Titan’s jewellery portfolio comprises brands like Tanishq, Mia, Zoya and CaratLane.

CaratLane’s turnover in FY23 stood at ₹2,177 crore, registering a year-on-year growth of 71.8% from FY22. Titan first picked up a 62% stake in CaratLane in 2016 for ₹357.24 crore. The Tata Group company increased its shareholding in the one-channel jewellery retailer over the years.

Titan acquired another 27.18% stake in the company last year, taking its total shareholding to 98.28%. The deal was carried out for ₹4,621 crore for the additional stake acquisition.

As part of the deal, Titan acquired 91,90,327 equity shares held by the founder of CaratLane Trading and his family members representing 27.18% of the total paid-up equity share capital.

Shares of Titan Company Ltd closed at ₹3,659 apiece, up 1.01% on NSE.