Tribhovandas Bhimji Zaveri shares locked in 20% upper circuit; here is why

Shares of Tribhovandas Bhimji Zaveri, the country's leading jewellery retailer, rose by their daily maximum limit of 20% and were locked in an upper circuit at ₹366.50 on the BSE after the company informed exchanges that it has signed a share purchase agreement to sell 74.12% stake in the company.

Tribhovandas Bhimji Zaveri in an exchange notification said that GRT Jewellers India Private Limited, one of India’s leading jewellery retail companies, signed share purchase agreement (SPA) with the promoters of lTribhovandas Bhimji Zaveri to acquire their stake of 74.12% in the company.

GRT would acquire the Promoter’s stake for an aggregate value of up to ₹1,033.71 crore. The consummation of the SPA will be subject to appropriate regulatory approvals and customary closing conditions. GRT will also be launching an open offer for another 26% as per applicable SEBI regulations, Tribhovandas Bhimji Zaveri said.

The proposed acquisition of Tribhovandas Bhimji Zaveri has triggered the open offer by GRT. Axis Capital, manager to the offer, has made a public announcement for the attention of the public shareholders of Tribhovandas Bhimji Zaveri for the open offer.

"We are truly excited to acquire the 162 years old Legacy Brand TBZ. This very well fits into our Strategy of spreading our presence across India with TBZ having 37 Stores. We are committed to create value for all Stakeholders, our Customers, Shareholders, Employees, Vendors, Bankers and other Associates in the years to come,’ said G.R. Ananth Ananthapadmanabhan, Managing Director of GRT Jewellers.

GRT Jewellers, founded by the Chairman Shri G. Rajendran in 1964, is an established leading jewellery retailer with 68 Stores across India and one store in Singapore, with over 12,000 dedicated employees. The brand is well known for the trust and auspiciousness in addition to carrying large collections of jewellery in gold, silver, diamond and platinum and also huge variety of silver articles, Tribhovandas Bhimji Zaveri said.

GRT Jewellers has around 6,50,000 sq. ft of retail space and has good presence in the e-commerce space and operates few sub brands like Oriana for Light Weight Affordable Jewellery in gold and diamonds and also Silvana for Silver Jewellery collections.

"What began five generations and 162 years ago as a single storefront in Zaveri Bazaar and a family dream has grown through decades of relentless dedication into 37 locations across the country. Seeing it step into the future with GRT fills me with immense pride. I am also very proud of my 2 daughters, Binaisha and Raashi who have played a very important role in the past 20 years to scale the business. We know that our heritage, our values, and our people are in the absolute best hands to write the next great chapter for TBZ," said Shrikant Zaveri, Chairman & Managing Director of TBZ.

As of 11:15 am, there were pending buy orders for 6,95,731 shares on the National Stock Exchange while no seller was seen on the bourse.