New Delhi: Branded jewellery maker Titan on Saturday announced the acquisition of an additional 27.18 per cent stake in its subsidiary CaratLane, taking its total holding to 98.28 per cent.
The Tata group-controlled firm entered into a share purchase agreement on Saturday to acquire 91.90 lakh equity shares held by the founder of CaratLane Trading Pvt Ltd and his family members, said a regulatory filing.
“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 per cent to 98.28 per cent on a fully diluted basis,” it said.
Over the cost of the acquisition, Titan said it will pay “Rs 4,621 crore towards the purchase of 27.18 per cent equity shares of CaratLane on a fully diluted basis”.
CaratLane Trading is an unlisted entity and its turnover in FY23 stood at Rs 2,177 crore. It also operates in the manufacture and sale of jewellery.
Titan expects the acquisition to be complete 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 per cent 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.
CaratLane, which was incorporated in September 2007, also has presence in the United States through its subsidiary.
PTI