This share purchase by Titan would result in an increase in shareholding of the company from 71.09 per cent in Caratlane to 98.28 per cent on a fully diluted basis, it said in a regulatory filing.
Titan Company on Saturday announced that it has signed a share purchase agreement with the founder of CaratLane and his family members representing 27.18 per cent of the total paid-up equity share capital (on a fully diluted basis) of CaratLane for a total consideration of Rs 4,621 crore. CaratLane is a subsidiary of Titan Company and this share purchase would result in an increase in shareholding of Titan from 71.09 per cent to 98.28 per cent on a fully diluted basis. “This is to inform that Titan Company Limited has entered into a share purchase agreement today to acquire the entire 91,90,327 equity shares held by the founder of CaratLane Trading Private Limited and his family members representing 27.18 per cent of the total paid-up equity share capital of CaratLane on a fully diluted basis,” the company said in a regulatory filing.
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CaratLane is an unlisted private company engaged in the manufacture and sale of jewellery. On acquisition, Titan would hold an aggregate of 98.28 per cent of the equity share capital and voting rights in the jewellery brand. The transaction will be subject to completion of customary regulatory approvals and closing conditions and is expected to be financed through a combination of cash balances, internal accruals and debt. “The indicative time period for completion of the acquisition would be 31st October 2023, subject to the timely receipt of requisite approvals,” it said.
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“Titan has always prided itself in building strong brands that are amongst the leaders in their categories. We have great faith in the India consumer story and believe that the growth journey of CaratLane has only begun and has a long way to go. We thank Mithun Sacheti, Founder and Managing Director of CaratLane for having jointly built a customer-centric brand that all of us in Tata Group can be proud of and wish him continued success in his future endeavours,” said CK Venkataraman, Managing Director, Titan.
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Mithun Sacheti, Founder and Managing Director, CaratLane, added, “Looking into the future, there couldn’t be a more ideal destination for CaratLane than Titan and the esteemed Tata Group who will provide the perfect opportunities for CaratLane to continue to grow from strength to strength. I whole-heartedly thank Titan as well as extend my heartfelt gratitude to colleagues, partners and million+ customers whose support and love has paved the way to our success and made it India’s largest digitally native omni-channel jewellery brand.”
CaratLane had started as a pure online brand in 2008. Titan first invested in the brand in 2016 and has worked in partnership with Tanishq over the past 8 years. For FY 2022-23, the turnover of CaratLane was Rs 2,177 crore.
