Titan Company Limited announced on Saturday that it is buying additional 27 percent stake in CaratLane Trading Private Limited. In a press release, the company said it has signed an agreement with CaratLane founder and his family members to acquire “all the shares held by them representing 27.18 percent “. The company will buy the additional stakes for a total consideration of Rs 4,621 crore.
With this agreement, Titan’s hold on the company increases from 71.09 percent to 98.28 percent on a fully diluted basis.
Titan is likely to complete the acquisition of the additional stakes in CaratLane by October 31, 2023. The transaction will be subject to completion of customary regulatory approvals and closing conditions and is expected to be financed through a combination of cash balances, internal accruals and debt.
Caratlane had reported turnover of Rs 2,177 crore in Financial Year 2023 against Rs 1,267 crore in Financial year 2022.
Unlisted CaratLane makes and sells jewellery. Titan, a joint venture between the Tata Group and Tamilnadu Industrial Development Corp, started as a watch company but has diversified into jewellery and eye care.