Mumbai: Titan Co has executed an agreement to acquire the balance 0.4% stake or 1,19,489 shares in subsidiary CaratLane.
As of date, CaratLane is a subsidiary of Titan wherein it holds a 99.64% stake. The completion of the aforesaid share purchase would result in CaratLane becoming a wholly-owned subsidiary of the company.
Titan will acquire the balance shares for a little over Rs 60 crore. The jewellery maker plans to complete the transaction by March end.
For 2022-23 (April-March), the turnover of CaratLane was Rs 2,177 crore. For the quarter ended December, its income grew 32% to Rs 893 crore.
CaratLane added 16 new stores in the last quarter, taking the total store count to 262 stores spread across 105 cities pan-India.
CaratLane was founded in 2008, through which, Titan wanted to bring accessible, affordable and forever wearable jewellery.
Titan’s jewellery division delivered 20% year-on-year (YoY) growth in revenue for the December quarter, and the management remains confident of delivering 20% annual growth in the medium term, despite a slowdown in other consumption categories.
Brokerage firm BNP Paribas believes Titan is uniquely positioned for market-share gains, with a
large growth headroom, and is, therefore, a part of its “Affluent India” stock list.
On Tuesday, shares of Titan ended nearly 1% higher on the BSE at Rs 3,652.55.
