GRT Jewellers Buys 74% Stake In TBZ For ₹1,033 Crore

GRT Jewellers India has proposed to acquire a 74% controlling stake in Tribhovandas Bhimji Zaveri (TBZ), a jewellery retailer with a history spanning over 160 years, in an all-cash transaction valued at ₹1,033 crore.

The acquisition will result in a change of control at TBZ, which was founded in Mumbai's Zaveri Bazaar in 1864. TBZ has grown from a single jewellery store to 37 stores across 28 cities, with a strong presence in Maharashtra and Gujarat.

GRT Jewellers has triggered an open offer to acquire up to 1,72,70,845 fully paid-up equity shares, representing 25.88% of TBZ's voting share capital. This offer will provide TBZ's public shareholders an opportunity to sell their shares following the proposed change in control.

Founded in 1964, GRT Jewellers operates jewellery retail businesses in India as well as overseas. The company's proposal to acquire TBZ has been well-received by investors, with TBZ shares hitting their 52-week high.

The TBZ share price climbed 4.99% to ₹545.70 on the BSE, marking a fresh 52-week high. The stock had also hit its upper circuit at ₹519.75 in the previous session. Over the past one year, the jewellery stock has delivered a return of more than 190%, according to BSE data.

The acquisition of TBZ by GRT Jewellers is expected to have a significant impact on the jewellery retail industry in India. With a strong presence in the market, GRT Jewellers is well-positioned to expand its operations and increase its market share.

The deal is also expected to benefit TBZ's public shareholders, who will have the opportunity to sell their shares at a premium. The open offer will provide them with a chance to exit their investment at a favourable price.

In conclusion, the acquisition of TBZ by GRT Jewellers is a significant development in the jewellery retail industry in India. With a rich history and a strong presence in the market, TBZ is a valuable addition to GRT Jewellers' portfolio. The deal is expected to have a positive impact on the industry and provide benefits to both companies.

The acquisition is a testament to the growing demand for jewellery in India and the increasing competition in the market. As the industry continues to evolve, it will be interesting to see how GRT Jewellers and TBZ navigate the changing landscape and maintain their position in the market.