Tata Group-owned Titan Company Ltd has entered into a share purchase agreement with jewellery brand Caratlane founder Mithun Sacheti and his family to secure further 27.18 percent ownership in the jewellery brand.
Caratlane is an unlisted private company, which is engaged in manufacturing and selling of jewellery and is a subsidiary of Titan.
The acquisition deal led Titan to become owner of 91,90,327 shares worth Rs Rs 4,621 crore, as revealed in an official exchange filing. The acquisition values the company at Rs 17,000 crore.
According to reports, Titan currently holds 71.09% of the total equity share capital of CaratLane on a fully diluted basis. The proposed acquisition would further increase Company’s stake in CaratLane to 98.28%.
However, the transaction will be subject to regulatory approvals and closing conditions and is expected to be financed through a combination of cash balances, internal accruals and debt, Titan said in a statement.
Caratlane reported a turnover of Rs 2,177 crore for FY 22-23. An interesting fact is that the acquisition deal is more than 7 times its sales.
"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 ofCaratLane 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.
Mithun Sacheti, managing director of Caratlane said, “ Having dreamt of making beautiful jewellery accessible and affordable to all, I am immensely proud of what we have collectively achieved at CaratLane in the past 15 years and where the business stands today.”
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In the last three fiscal years, the company reported a CAGR of 74% growth in its sales, albeit on a low base of Covid-affected year.
“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.” Sacheti added.
