Titan Ltd has acquired 27.18 percent additional stake in Caratlane from the founder and his family members for a total consideration of Rs 4,621 crore ($556 million).
Caratlane is a subsidiary of Titan Ltd 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.
Commenting on the acquisition, CK Venkataraman, managing director at Titan Ltd in a statement said, “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.”
Mithun Sacheti, founder of 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.”
The transaction is 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.
Caratlane had started as an online brand in 2008 and first sold a stake to Titan Ltd 2016. For FY 2022-23, the reveneue of Caratlane was Rs 2,177 crore.
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