11 hrs ago
TBZ Shares Surge as GRT Jewellers Announces Acquisition
TBZ is a company that sells jewellery.
Its share price rose sharply for the second day in a row.
This happened after GRT Jewellers agreed to buy most of TBZ from its promoters.
The deal covers a 74.12% stake and may cost up to ₹1,033.71 crore.
GRT also plans to offer to buy another 26% of the company.
The deal still needs regulatory approvals and other closing conditions.
TBZ has existed since 1864 and has 37 locations across India.
Investors appear to have responded positively to the proposed change in ownership and growth plans.
TBZ shares rose more than 11% on Wednesday, reaching an intraday high of ₹430 on the NSE.
The stock had hit a 20% upper circuit at ₹366.50 on September 1.
GRT Jewellers agreed to acquire a 74.12% promoter stake in TBZ for up to ₹1,033.71 crore.
GRT plans to make an open offer for an additional 26% stake, subject to SEBI regulations.
TBZ shares have gained 32% in a week, 46% in a month and 145% year to date.
- Who
- Tribhovandas Bhimji Zaveri, its promoters and GRT Jewellers, led by Managing Director G.R. Radhakrishnan.
- What
- GRT Jewellers agreed to acquire a 74.12% stake in TBZ and plans an open offer for another 26%.
- Where
- The share-price movement occurred on the NSE; TBZ traces its origins to Zaveri Bazaar in Mumbai and operates 37 locations across the country.
- When
- The acquisition announcement was disclosed in an exchange filing dated August 31; TBZ shares surged on September 2 after rising on September 1.
- Why
- The proposed acquisition and GRT’s stated plans for a broader pan-India presence and TBZ’s next phase of growth drove investor interest.
Key facts
- Acquirer
- GRT Jewellers
- Stake to be acquired
- 74.12% promoter stake
- Proposed consideration
- Up to ₹1,033.71 crore
- Planned open offer
- Additional 26% stake
- Wednesday intraday high
- ₹430 on the NSE
- One-week share gain
- 32%
- TBZ history
- Founded in 1864; currently has 37 locations
Quotes
Shrikant Zaveri
Chairman and Managing Director of Tribhovandas Bhimji Zaveri
“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��”
livemint.com
Sources
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