On Saturday, the company, Titan, made an announcement about purchasing a 27% additional stakes in CaratLane Pvt. Ltd. The announcement was made via a press release shared by the Titan company.
In the press release it was stated that, ” Titan Company Limited today announced that it has signed a Share Purchase Agreement with the Founder of CaratLane Trading Private Limited (‘CaratLane) and his family members to acquire all the shares held by them representing 27.18% of the total paid-up equity share capital (on a fully diluted basis) of CaratLane for a total consideration of 2 4,621 crore.”
Caratlane is an unlisted private company engaged in the manufacture and sale of jewellery and is a subsidiary of Titan. On acquisition, the Company would hold an aggregate of 98.28% of the equity share capital and voting rights (on a fully diluted basis) in CaratLane. 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.
The first investment made by Titan in Caratiane was in 2016 and over these 8 years, the brand has grown by Icaps and bounds with its partnership with Tanishq. Caratiane, for modern women of this age, has extended its consumer purchasing preferences to offer attractive fashion jewelry options. Today, Titan offers the widest choices to its customers through the brands of Tanishq, Mia, Zoya and CaratLane.
C K Venkataraman, the Managing Director of Titan commented on this saying,”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 Caratiane 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.”
It was further added by Mithun Sacheti, the Founder and Managing Director of CaratLane that,”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 Caratiane 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 Caratiane and all those associated with it many more successes in times to come.”
Currently, the Company owns 71.09% of CaratLane’s overall equity share capital in full diluted form. The proposed transaction further increases the holding in CaratLane by 98.28% on a fully diluted basis, thereby increasing the economic interest of the Company in that subsidiary.
