Shares of Tribhovandas Bhimji Zaveri Ltd (TBZ) experienced a significant rally on Tuesday, hitting their 20% upper circuit limit in response to an open offer from GRT Jewellers India. The Mumbai-based jewellery retailer's stock reached Rs 366.50 apiece, marking a remarkable 148.73% increase over the past six months.
The surge comes after GRT Jewellers India signed a comprehensive share purchase agreement (SPA) with the promoters of TBZ. Under this agreement, GRT Jewellers plans to acquire 4,94,59,775 shares, representing 74.12% of TBZ’s voting share capital. The maximum price for these shares is set at Rs 209 per share, leading to an aggregate consideration of up to Rs 1,033.71 crore.
GRT Jewellers' Open Offer Details
Following the SPA, GRT Jewellers is also making a mandatory 26% open offer to the public shareholders of TBZ. The open offer price has been fixed at Rs 249.61 per share. Interestingly, this open offer price stands at an 18% discount compared to TBZ's closing price on Monday, before the announcement.
The consummation of both the share purchase agreement and the open offer is contingent upon various regulatory approvals and customary closing conditions. TBZ informed the BSE that these conditions include, but are not limited to, receiving approval from the Competition Commission of India (CCI) and lenders' approval.
Advisory Roles in the Transaction
Several prominent firms are advising on this significant transaction. Deloitte is serving as the lead advisor for the overall deal. Axis Capital is acting as the financial advisor for GRT Jewellers, with Trilegal providing legal counsel. Srihari & Co. is handling the financial and tax due diligence for GRT. On TBZ’s side, AZB & Partners is providing legal counsel, and Ernst & Young LLP is serving as their financial advisor.
Shrikant Zaveri, Chairman & Managing Director of TBZ, expressed his pride regarding the development: "What began five generations and 162 years ago as a single storefront in Zaveri Bazaar and a family dream has grown through decades of relentless dedication into 37 locations across the country. Seeing it step into the future with GRT fills me with immense pride. I am also very proud of my 2 daughters, Binaisha and Raashi who have played a very important role in the past 20 years to scale the business. We know that our heritage, our values, and our people are in the absolute best hands to write the next great chapter for TBZ."
This acquisition marks a pivotal moment for TBZ, a brand with a rich legacy in the Indian jewellery market, as it transitions under new majority ownership.