Titan picks up further 27.18% stake in CaratLane for Rs 4,621 crore

21 Aug 2023 , 11:19 AM

According to a regulatory filing with the bourses, Titan has agreed to buy an additional 27.18% stake in online jewellery retailer CaratLane for Rs 4,621 crore. This will take the company’s valuation to Rs 17,000 crore.

CaratLane founder Mithun Sancheti and his family have sold their investment in the online store in what is the second largest e-commerce departure after Walmart bought 77% shares in Flipkart for $16 billion in 2018, providing Sachin Bansal and Binny Bansal an exit.

Titan presently holds 71.09% of CaratLane’s entire equity share capital on a fully diluted basis. After this acquisition, the company’s holding in CaratLane will increase to 98.28%.

Titan said the deal will be subject to usual regulatory clearances and closing conditions and will be financed through a combination of cash balances, internal accruals, and debt, with only approval from the Competition Commission of India required.

CaratLane is a subsidiary of Titan and an unlisted private firm involved in the manufacture and selling of jewellery.

CaratLane began as a complete online brand in 2008. Titan originally invested in CaratLane in 2016, and the brand has expanded rapidly over the last eight years in collaboration with Tanishq. Its sales have increased at a CAGR of 74% over the last three fiscal years, although from a low base of Covid-affected years.

At around 11.11 AM, Titan Company was trading 0.38% higher at Rs 3,062.05 per piece, against the previous close of Rs 3,050.45 on NSE. The counter rose to an intraday high of Rs 3,080.

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