TBZ Shares Extend Rally Following GRT Jewellers' Majority Stake Acquisition

Shares of Tribhovandas Bhimji Zaveri (TBZ) extended their gains for the second consecutive trading session on Wednesday, settling 15 per cent higher as investors reacted to a major consolidation move in the retail jewellery sector.

The stock climbed to a record high of ₹430 on the National Stock Exchange (NSE) before closing the session at ₹418.25. Trading opened at ₹380, up from the previous close of ₹366.80. This follows a 20 per cent surge to the upper circuit during the prior trading session.

The upward momentum comes in the wake of an agreement by GRT Jewellers to acquire a 74.12 per cent controlling stake in TBZ from the company's top shareholders and promoters. Based in Chennai, GRT Jewellers is one of the largest jewellery retail chains in southern India.

According to regulatory disclosures, the acquisition of the 74.12 per cent stake is valued at ₹10.34 billion, representing a purchase price of ₹209 per share. The transaction price reflects a 31.6 per cent discount compared to TBZ's closing price on Monday.

Following the completion of the stake purchase from the promoters, GRT Jewellers will launch a mandatory open offer to acquire up to an additional 26 per cent stake from remaining shareholders, complying with market regulations for corporate acquisitions.

"This transaction highlights the ongoing consolidation within India's organized retail jewellery sector, as regional heavyweights expand their geographic footprints. While the acquisition price reflects a discount to the recent market price, the immediate positive market reaction indicates that investors are pricing in potential operational synergies and long-term growth prospects under new leadership. Mandatory open offers in such acquisitions also provide an exit mechanism for public shareholders as ownership transitions." — Dr. Shishir Gupta, Founder & CEO, StartupLanes