As per the filing report, Jewellery-to-eyewear lifestyle company Titan Company Ltd also an entity of Tata’s Group would pay Rs 357.34 crore to acquire a 62 percent stake in Chennai-based Carat Lane Trading Private Limited, the parent entity of the jewellery etailer CaratLane.com.
In May, Titan Company acquired a majority stake in CaratLane.com. The Company is acquiring 19,142,545 shares in the parent entity. Caratlane raised over $50 million in funding from Tiger Global Management.
Carat Lane Trading Private Limited, which is involved in designing, manufacturing, trading and retailing of gems and jewellery, clocked revenues of Rs 141 crore for the financial year 2015-16. Its revenues in the preceding two consecutive fiscals were Rs 127 crore and Rs 101 crore, respectively.
Titan Company said it is acquiring a “leading brand and business in the jewellery online industry catering to a different segment of customers with significant internal capabilities in design, manufacturing, technology and e-commerce.” It added, “We believe the synergies with the jewellery business of Titan Company Limited are very high.”
The acquisition is expected to be completed “within 14 business days hereof subject to completion of pre-closing conditions”, the company said. Titan Company’s shares were trading at Rs 423.95 apiece, up by 2.22 percent in Friday afternoon trade over the previous day’s closing share price of Rs 414.75.