Titan Company Limited on Saturday entered into a share purchase agreement to acquire 91,90,327 shares representing 27.18 per cent stake in Caratlane Trading private Limited held by the founder and his family members, the company announced through an exchange filing. The company will buy the additional stakes for a total consideration of ₹4,621 crore. On completion of the agreement Titan's hold on the company would increase from 71.09 per cent to 98.28 per cent on a fully diluted basis. The transaction will be 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 is an unlisted private company engaged in the manufacture and sale of jewellery and is a subsidiary of Titan. CaratLane started as a pure online brand in 2008 with an aim to lead and shape the fast-growing Indian market for affordable and accessible jewellery.
Titan first invested in CaratLane in 2016 and over the past 8 years, in partnership with Tanishq, the brand has grown by leaps and bounds. CaratLane has expanded consumer purchase preferences offering beautiful fashionable jewellery for the contemporary woman of today's era. Titan today offers the widest choices to its jewellery consumers through the brands ofTanishq, Mia, Zoya and CaratLane.
Commenting on the announcement C K Venkataraman, Managing Director, Titan, 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 and Managing Director, CaratLane, added, "Having dreamt of making beautiful jewellery accessible and affordable to all, I am immensely proud of what we have collectively achieved at CaratLane in the past 15 years and where the business stands today. 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. I whole-heartedly thank Titan as well as extend my heartfelt gratitude to colleagues, partners and million+ customers whose support and love has paved the way to our success and made it India's largest digitally native omni-channel jewellery brand. I wish CaratLane and all those associated with it many more successes in times to come."
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