TBZ shares surge 20% to record high after GRT Jewellers deal
Investors expect the combination to strengthen the jewellery retailer’s market position and support expansion across southern and western India.
Shares of Tribhovandas Bhimji Zaveri (TBZ) rose by nearly 20% to a record high of 366.80 rupees on Tuesday, following GRT Jewellers' announcement to acquire a controlling stake in the jewellery retailer. The deal, valued at 10.34 billion rupees ($109.03 million) or 209 rupees per share, represents a 31.6% discount to TBZ's closing price on Monday.
This 74.12% stake acquisition aims to boost TBZ's growth prospects as investors anticipate a strengthened combined entity. GRT Jewellers, a major retailer in southern India with 68 stores, will also launch a mandatory open offer for the remaining 26% stake. Analysts expect the merger to enhance the market standing and regional brand image of the combined company, with GRT's presence in southern India complementing TBZ's established footprint in western India.
The deal comes amid intense competition among organised jewellery chains in a fragmented market, driven by strong revenue growth despite weaker volumes as gold prices surged. Over 12 million TBZ shares changed hands by late Tuesday, six and a half times the stock's 30-day daily average.
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