Tribhovandas Bhimji Zaveri Shares In Focus As CCI Clears GRT Jewellers’ ₹1,034 Crore Takeover Deal
Add Preferred News Source
Competition clearance moves GRT Jewellers’ proposed takeover of TBZ a step closer to completion. The transaction would transfer control from the existing promoters, while a separate open offer gives public shareholders an opportunity to tender their shares.
Tribhovandas Bhimji Zaveri’s ₹1,034 crore takeover deal has cleared a key regulatory hurdle, putting the jewellery retailer’s shares in focus ahead of trading on Wednesday, October 14. The Competition Commission of India (CCI) on Tuesday approved GRT Jewellers’ proposed acquisition of a 74.12% controlling stake in the company.
The clearance advances the transaction announced in August, under which Chennai-based GRT agreed to purchase the TBZ promoter group’s stake for up to ₹1,033.71 crore. It comes with the stock already trading well above the agreed acquisition and open offer prices.
TBZ shares ended Tuesday at ₹655.85 on the NSE, up ₹31.20, or 4.99%, at their upper circuit limit. That compares with a maximum promoter-stake purchase price of ₹209 per share and a separate open offer price of ₹249.61 for public shareholders.
CCI approval brings the proposed change in ownership a step closer, although the acquisition remains subject to applicable closing conditions. The regulator said a detailed order would follow.
TBZ Takeover Would Transfer Control To GRT Jewellers
GRT signed the share purchase agreement on August 31 to acquire 4,94,59,775 TBZ shares, representing 74.12% of its voting capital. The sellers include members of the Zaveri family and two promoter-group companies, which would exit their holdings once the transaction is completed.
The deal would give GRT access to TBZ’s established jewellery brand and retail network. TBZ traces its business to Mumbai’s Zaveri Bazaar in 1864 and operates 37 stores across India. GRT, founded in 1964, had 68 stores in India and one in Singapore, according to its August announcement.
The proposed acquisition links GRT’s strong southern presence with TBZ’s established footprint in western India. When the deal was announced, analysts at ICICI Direct identified this complementary reach as an opportunity for expansion across the two markets.
TBZ Open Offer Covers Another 25.88% Stake
Alongside the promoter-stake acquisition, GRT has proposed an open offer for up to 1,72,70,845 equity shares, representing 25.88% of TBZ’s voting share capital, at ₹249.61 per share.
The offer follows the proposed transfer of control under SEBI’s takeover regulations. TBZ disclosed receipt of the draft letter of offer in September.
With competition clearance now in place, attention turns to the remaining closing conditions, further open offer disclosures and confirmation of the ownership transfer. Wednesday’s session will provide the next share-price update following the regulatory announcement.
Also Read - LTCG Tax On Shares To Be Scrapped? What FM Nirmala Sitharaman’s Remarks Mean For Stock Market Investors
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
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
