Mumbai: 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.
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