Shares of Tribhovandas Bhimji Zaveri (TBZ) have experienced a remarkable 56% rally this week, with the stock hitting an upper circuit and an all-time high. This significant surge follows an announcement by GRT Jewellers India on August 31 that it would acquire a majority stake in the Mumbai-based jewellery retailer.
GRT Jewellers Acquires Majority Stake in TBZ
GRT Jewellers India has agreed to purchase a 74.12% stake in Tribhovandas Bhimji Zaveri for an aggregate value of up to Rs 1,033.71 crore. The announcement, made after market hours on Monday, immediately impacted TBZ's stock performance. Following the initial acquisition, GRT is also mandated to launch an open offer for an additional 26% stake, adhering to SEBI regulations.
Deloitte served as the lead advisor for the transaction, with Axis Capital acting as the financial advisor for GRT Jewellers.
Stock Performance Highlights
In the current trading session, Tribhovandas Bhimji Zaveri shares surged 10% to close at Rs 472.50, pushing the company's market capitalization to Rs 3,153 crore. This week's 56% gain is part of a broader upward trend for the multibagger stock, which has clocked a 240% rally over the past six months and an impressive 504% increase over the last five years. Technically, the stock is considered strongly overbought, with its Relative Strength Index (RSI) at 84.4.
About the Companies
GRT Jewellers: Known as one of India's fast-growing jewellery chains, GRT Jewellers boasts approximately 6,50,000 sq.ft of retail space and a strong e-commerce presence. The company operates sub-brands such as Oriana for lightweight gold and diamond jewellery and Silvana for silver collections, serving a loyal customer base of over 15 million.
Tribhovandas Bhimji Zaveri: TBZ maintains a pan-India retail footprint with 37 stores. This extensive presence allows the company to stay connected with its customers and adapt to evolving preferences in the jewellery market.
Regulatory Approvals Awaited
The consummation of the share purchase agreement remains subject to appropriate regulatory approvals and customary closing conditions. Investors will be watching closely as the deal progresses through the necessary channels.