Titan Ltd to invest Rs 60 crore to acquire balance stake in Caratlane

Tata Group-owned jewellery firm Titan Ltd has entered into an agreement to acquire the remaining 0.36 percent stake in Caratlane for Rs 60 crore ($7.5 million).

With the acquisition of this balance stake, Titan will own 100 percent stake in the jewellery retailer Caratlane. The transaction is expected to be completed before the end of the current financial year.

Currently, Caratlane is a subsidiary of Titan Ltd wherein it holds 99.64 percent of the total paid up capital of Caratlane.

“Titan Company Limited had executed relevant documents to purchase balance 1,19,489 equity shares held by the individual shareholders of Caratlane representing 0.36 percent of the total paid-up equity share capital of face value of Rs 2 each,” Titan Ltd said in a regulatory filing.

“The completion of the aforesaid share purchase would further increase the company’s stake in CaratLane to 100 percent, making it a wholly owned subsidiary of Titan Company,” it added.

Titan Ltd had first invested in Caratlane in 2016, which had been in a strategic vendor relationship with Tanishq since 2010. Later, Titan bought shares of Caratlane in tranches, mainly via a secondary purchase of shares.