Titan Acquires Remaining 27.18% Stake In Jewellery Maker CaratLane For Rs 4,600 Crore

Following the transaction, Titan will hold a 98.28 per cent stake in CaratLane, having acquired 91.90 lakh equity shares. This deal sets a valuation of Rs 17,000 crore for CaratLane.

Titan currently holds 71.09 per cent of the total equity share capital of CaratLane on a fully diluted basis. 

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Titan has acquired the remaining 27.18 per cent stake in its Jewellery subsidiary, CaratLane for an amount of Rs 4,621 crore. The purchase was made from the CaratLane founder Mithun Sacheti and his family, an exchange filing on Saturday said. CaratLane, a private unlisted company engaged in jewellery manufacturing and sales, operates as a subsidiary of Titan.

Following the transaction, Titan will hold a 98.28 per cent stake in CaratLane, having acquired 91.90 lakh equity shares. This deal sets a valuation of Rs 17,000 crore for CaratLane. Titan currently holds 71.09 per cent of the total equity share capital of CaratLane on a fully diluted basis. 

Titan Company Ltd said that the transaction will be subject to the completion of customary regulatory approvals and closing conditions. The deal is expected to be financed through a combination of cash balances, internal accruals, and debt. Approval from the Competition Commission of India will also be needed.

Established in 2008 by Mithun Sacheti and Srinivasa Gopalan, the company, which was initially an online retailer, has since evolved. In July 2016, it became a subsidiary of Titan Jewellery, functioning in partnership with Tanishq. At the time Titan first acquired a 62 per cent stake in CaratLane for Rs 357.24 crore. 

 

Mithun Sacheti, Founder and Managing Director, 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. 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."

 

C K Venkataraman, Managing Director, Titan, said, "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."