TBZ Stock Soars Over 38% In 2 Sessions: What’s Fuelling The Rally?
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TBZ shares have surged over 38% in two sessions after GRT Jewellers announced plans to acquire a 74.12% promoter stake in the jewellery retailer and launch an open offer for public shareholders.
Tribhovandas Bhimji Zaveri (TBZ) shares jumped 38.9% in two sessions, rising from Monday’s close of ₹304.45 to ₹423 by 9:25 am on Wednesday, 2 September. Investors continued to react to GRT Jewellers’ proposed acquisition of the listed jewellery retailer.
The stock gained 16.11% on Wednesday, or ₹58.70, after opening at ₹380. This followed a 20% upper-circuit move on Tuesday, when TBZ shares closed at ₹366.80.
The sharp rise came after GRT Jewellers announced plans to acquire the entire promoter holding in TBZ and take control of the company.
Today, TBZ share price closed at ₹414, up 12.87% on the National Stock Exchange (NSE).
GRT To Buy 74.12% Promoter Stake
Under the share purchase agreement, GRT will acquire 4.95 crore TBZ shares, representing 74.12% of the company’s voting capital. The deal carries a maximum price of ₹209 per share, putting the promoter-stake transaction at up to ₹1,033.71 crore.
The sellers include members of the Zaveri family and two promoter-group companies. They will exit their holdings once the transaction is completed.
The acquisition also triggered a mandatory open offer for up to 1.73 crore shares, representing the remaining 25.88% of TBZ’s voting capital. GRT has offered ₹249.61 per share under the open offer.
If the offer is fully accepted, the cash outgo could reach ₹431.10 crore. This would take the maximum combined transaction value to around ₹1,465 crore, according to the company’s filing.
TBZ Market Price Above Open Offer
The sharp rise in TBZ shares has pushed the market price well above the prices offered under the transaction.
At ₹423, the stock was trading nearly 69.5% above GRT’s open-offer price of ₹249.61. It was also more than double the ₹209 per share agreed for the promoter stake.
The open offer covers 25.88% rather than the 26% minimum generally required under takeover rules because it represents TBZ’s entire public shareholding as of the announcement date.
The two-session rally came as investors assessed the proposed change in ownership and the potential impact on TBZ under its new promoter.
GRT To Become TBZ’s New Promoter
Once the acquisition is completed, GRT will take control of TBZ and become its promoter. The existing promoters will exit the company and be declassified from the promoter and promoter-group category.
The transaction remains subject to approvals from the Competition Commission of India and identified lenders, along with other conditions set out in the share purchase agreement. The price payable for the promoter stake may be reduced but cannot be increased.
GRT has said it does not plan to delist TBZ. If the acquisition and open offer result in public shareholding falling below the mandatory 25% threshold, GRT will take steps to restore the required level within the period allowed under listing regulations.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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