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Titan buys a further 27.18% stake in CaratLane for Rs 4,621 crore

Aug 21, 2023

By: BlinkX Research Team

In a deal that values the company at Rs 17,000 crore, Titan has agreed to purchase an additional 27.18 percent share in online jewellery retailer CaratLane for Rs 4,621 crore.

Titan presently owns, on a fully diluted basis, 71.09 percent of the whole equity share capital of CaratLane. The planned acquisition would bring the company's ownership in CaratLane to 98.28%.

The deal is anticipated to be financed by a combination of cash on hand, internal accruals, and debt, Titan said, adding that only the Competition Commission of India's clearance is required. The transaction will be subject to completion of customary regulatory approvals and closing conditions.

CaratLane is an unlisted private company engaged in the manufacture and sale of jewellery and is a subsidiary of Titan.

For FY22-23, the turnover of CaratLane was Rs 2,177 crore. The transaction values the company at 7.8 times its FY23 sales. This is at a slight premium to how the market values Titan itself – 7.07 times its FY23 sales.

Source: Media Reports