GRT Jewellers to buy controlling stake in TBZ for up to Rs 1,034 crore

GRT Jewellers India will acquire a 74.12% controlling stake in listed jewellery retailer Tribhovandas Bhimji Zaveri Ltd for up to Rs 1,033.71 crore, in a deal that will bring together two of India's oldest and largest jewellery retail chains.

GRT has signed an agreement with the promoters of TBZ, popularly known as TBZ The Original, to acquire 49.46 million shares, representing their entire 74.12% stake in the company.

The shares will be bought at a price of up to Rs 209 each, subject to regulatory approvals and other conditions. The final price could be revised downwards following an audit but cannot be increased.


Following the acquisition, GRT will make a mandatory open offer to TBZ's public shareholders, as required under India's takeover regulations. If the transaction is completed, GRT will acquire sole control of TBZ and the existing promoter family will exit the company.

The deal will significantly expand GRT's national presence by adding TBZ's network of 37 stores to its existing 68 stores in India and one in Singapore.

TBZ, founded in 1864, is one of India's oldest jewellery brands. GRT was founded in 1964 and has grown into one of the country's larger jewellery chains.

GRT Managing Director G.R. Ananth Ananthapadmanabhan said the acquisition fitted into the company's strategy of expanding its presence across India.

"This very well fits into our strategy of spreading our presence across India," Ananthapadmanabhan said, referring to TBZ's 37-store network.

G.R. Radhakrishnan, managing director of GRT Jewellers, called the acquisition transformative and said it would help the company build a meaningful presence across India.

The companies said the combination would bring together TBZ's long-established brand, customer relationships and jewellery portfolio with GRT's retail capabilities and expansion plans.

TBZ Chairman and Managing Director Shrikant Zaveri said the deal marked a new chapter for the 162-year-old brand, which began with a single store in Mumbai's Zaveri Bazaar.

After the transaction is completed, GRT will have the right to appoint directors to TBZ's board. Shrikant Zaveri and TBZ directors Binaisha Zaveri and Raashi Zaveri will resign from the board. Some of the existing promoters may subsequently enter into employment or consultancy arrangements with the company to help with the transition.

The transaction is subject to regulatory approvals and other closing conditions.

Deloitte advised on the transaction, while Axis Capital was GRT's financial adviser. Trilegal advised GRT on legal matters, while AZB & Partners was legal adviser to TBZ.