Tribhovandas Bhimji Zaveri Shares Hit Record High Following GRT Jewellers' 74% Acquisition Deal

Shares of Tribhovandas Bhimji Zaveri (TBZ) surged by nearly 20% to a record high of 366.80 rupees on Tuesday, hitting the exchange-allowed maximum for the day. The sharp increase followed an announcement that southern India-based GRT Jewellers has agreed to acquire a controlling stake in the 162-year-old jewellery retailer.

Chennai-headquartered GRT Jewellers will acquire a 74.12% stake from TBZ's top shareholders for 10.34 billion rupees, amounting to 209 rupees per share. This purchase price represents a 31.6% discount to the stock's closing price on Monday. Additionally, GRT Jewellers will launch a mandatory open offer to acquire the remaining 26% stake in the company.

Market activity surrounding the announcement was heavy, with more than 12 million TBZ shares changing hands by late morning on Tuesday. This volume was approximately 6.5 times the stock's 30-day daily average.

Industry analysts noted that the transaction combines GRT Jewellers' strong presence in southern India with TBZ's established footprint in western India. GRT currently operates 68 stores in India and one in Singapore, while TBZ operates 37 stores. Analysts at ICICI Direct stated that the combination will help the unified business expand across both regional markets.

Sunny Agrawal, head of fundamental equity research at SBICAPS Securities, remarked that market participants anticipate a fresh phase of growth for TBZ under a new promoter, adding that the combined entity will possess a stronger regional brand image and market standing.

The acquisition takes place against the backdrop of increased competition among organised jewellery chains vying for market share in a highly fragmented industry. Jewellery retailers across the sector have reported robust revenue growth despite softer volumes, driven primarily by record-high gold prices and a broader consumer shift toward branded chains.

"This acquisition highlights the ongoing consolidation within India's retail jewellery sector as established regional players look to expand their national footprints. By combining GRT Jewellers' strong southern presence with TBZ's legacy brand and western footprint, the merged entity creates a more resilient platform to capture market share from the unorganised sector. For investors and market watchers, such strategic consolidation demonstrates how legacy brands are adapting to scale effectively in a competitive landscape." — Dr. Shishir Gupta, Founder & CEO, StartupLanes