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Titan Buys 27% Caratlane Stock
The Tata Group company Titan has purchased the remaining 27.18 per cent stake in its jewellery arm CaratLane for Rs 4,621 cash from the brand’s owner Mithun Sacheti and his family.
CaratLane is a subsidiary of Titan, an unlisted private company engaged in manufacturing and selling jewellery.
Titan announced the purchase of 91.90 lakh equity shares in CaratLane, giving them a 98.28% ownership in the company.
The transaction is subject to the completion of customary regulatory approvals and closing transactions. It is expected to be financed through cash balances, internal accruals and debt.
According to Titan News, the indicative time frame for completing the acquisition process is October 31st.
The Groundwork Behind the Purchase of Stakes
Titan has always built solid brands among this category’s leaders. Carat Lane’s founders believe the journey has just begun, and there is a long way to go.
In the words of Carat Lane’s owner, it started its journey as a purely online brand in 2008.
Titan first invested in the brand in 2016 and has partnered with Tanishq over the past eight years. For FY 2022- 2023, the turnover of Carat Lane was 2,177 crores.
A Glimpse into the Future
Having a sneak peek into the future, it could be more of an ideal destination for CaratLane than Titan company. Hence the esteemed Tata Group will provide opportunities for CaratLane to grow from strength to strength.
With CaratLane Titan signing a purchase agreement starting in 2021, it could call for the remaining 28 % stake. Based on the pre-agreed formula, the remaining shareholders have a right to have a put option on Titan for their stake starting from 2023.
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