Titan to pay Rs 357 crore for 62% stake in CaratLane.com
The Chennai-based jewellery etailer clocked revenues of Rs 141 crore in FY16
The Tata Group’s jewellery-to-eyewear lifestyle entity Titan Company Ltd has informed the Indian bourses that it would pay Rs 357.34 crore to acquire a 62 percent stake in Chennai-based Carat Lane Trading Private Limited, the parent entity of the jewellery etailer CaratLane.com.
In May this year, Titan Company had said it would acquire a majority stake in CaratLane.com, which has raised over $50 million in funding and counts hedge fund Tiger Global Management as an investor. Titan Company is acquiring 19,142,545 shares in the parent entity.
Carat Lane Trading Private Limited, which is involved in designing, manufacturing, trading and retailing of gems and jewellery, clocked revenues of Rs 141 crore for the financial year 2015-16. Its revenues in the preceding two consecutive fiscals were Rs 127 crore and Rs 101 crore, respectively.
Titan Company said it is acquiring a “leading brand and business in the jewellery online industry catering to a different segment of customers with significant internal capabilities in design, manufacturing, technology and ecommerce.” It added, “We believe the synergies with the jewellery business of Titan Company Limited are very high.”
The acquisition is expected to be completed “within 14 business days hereof subject to completion of pre-closing conditions”, the company said. Titan Company’s shares were trading at Rs 423.95 apiece, up by 2.22 percent in Friday afternoon trade over the previous day’s closing share price of Rs 414.75.
