India’s Tribhovandas Bhimji Zaveri said on Monday that GRT Jewellers India will acquire a 74.12% stake in the company for up to Rs 1,034 crore ($108.66 million), taking control of the jewellery retailer.
Based on Tribhovandas Bhimji Zaveri’s market capitalisation of Rs 2,038 crore, the stake is valued at about Rs 1,511 crore.
India’s jewellery sector is reassessing its growth strategy as major retailers rein in rapid expansion and double down on lightweight jewellery as gold prices soar to all-time highs.
GRT will acquire the stake from the firm’s top shareholders and launch an open offer for about 26% additional stake, the companies said in a press release.
Both Tribhovandas Bhimji Zaveri and GRT have a strong presence in gold and diamond jewellery, integral to weddings and other auspicious occasions in India, the world’s second-largest gold consumer that relies on imports to meet nearly all of its demand.
Tribhovandas Bhimji Zaveri, which began with a single store in 1864, fits into GRT‘s strategy to expand its footprint across India through its network of 37 stores, GRT Jewellers‘ Managing Director GR Ananthapadmanabhan said.
The acquisition of the 162-year-old legacy brand would help GRT build a stronger pan-India presence, the company said.
Founded in Chennai in 1964, GRT operates 68 stores across India and one in Singapore.
The stake purchase is subject to regulatory approvals, the firms said.
Reuters
