Tribhovandas Bhimji Zaveri soars to record high on growth optimism after GRT Jewellers deal
Tribhovandas Bhimji Zaveri’s shares surged to a record high on Tuesday after GRT Jewellers agreed to acquire a controlling stake in the jewellery retailer, with investors expecting the deal to boost TBZ’s growth prospects. Shares of the company jumped nearly 20%to a record 366.80 rupees, hitting their exchange-allowed maximum for the day. GRT Jewellers, one of the biggest jewellery retailers in southern India, will acquire a 74.12% stake from the top shareholders of TBZ for 10.34 billion rupees ($109.03 million), or 209 rupees per share, a 31.6% discount to the stock’s closing price on Monday. The Chennai-headquartered jeweller will also launch a mandatory open offer for the remaining 26% stake. India’s GRT Jewellers seeks control of Tribhovandas Bhimji Zaveri in up to $109 million deal “The market is expecting a fresh leg of growth for the company with the advent of a new promoter. The combined entity of GRT and TBZ would have better standing in the market, along with a stronger regional brand image,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. GRT operates 68 stores in India and one in Singapore compared to 37 for the 162-year-old TBZ. The acqui
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Tribhovandas Bhimji Zaveri soars to record high on growth optimism after GRT Jewellers deal
Tribhovandas Bhimji Zaveri’s shares surged to a record high on Tuesday after GRT Jewellers agreed to acquire a controlling stake in the jewellery retailer, with investors expecting the deal to boost TBZ’s growth prospects. Shares of the company jumped nearly 20%to a record 366.80 rupees, hitting their exchange-allowed maximum for the day. GRT Jewellers, one of the biggest jewellery retailers in southern India, will acquire a 74.12% stake from the top shareholders of TBZ for 10.34 billion rupees ($109.03 million), or 209 rupees per share, a 31.6% discount to the stock’s closing price on Monday. The Chennai-headquartered jeweller will also launch a mandatory open offer for the remaining 26% stake. India’s GRT Jewellers seeks control of Tribhovandas Bhimji Zaveri in up to $109 million deal “The market is expecting a fresh leg of growth for the company with the advent of a new promoter. The combined entity of GRT and TBZ would have better standing in the market, along with a stronger regional brand image,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities. GRT operates 68 stores in India and one in Singapore compared to 37 for the 162-year-old TBZ. The acqui
