TBZ shares hit 20% upper circuit limit after GRT Jewellers open offer; check details

Tribhovandas Bhimji Zaveri Ltd (TBZ) shares rallied 20 per cent in Tuesday's trade, following the mandatory 26 per cent open offer by GRT Jewellers India that signed a share purchase agreement (SPA) with the promoters of the listed jewellery retail company to acquire 74.12 per cent of their stake in the company.

The multibagger stock hit its upper circuit limit at Rs 366.50 apiece, taking its six-month rise to 148.73 per cent. This is even as the open offer price was set at Rs 249.61 per share, which was at 18 per cent discount to Monday's closing price.

GRT Jewellers entered into a share purchase agreement with TBZ, pursuant to which the former agreed to purchase 4,94,59,775 shares, constituting 74.12 per cent of the voting share capital of TBZ from the promoters and members of the promoter group at a maximum price of Rs 209 per share and for a maximum aggregate consideration of Rs 1,033.71 crore.

The consummation of the SPA will be subject to appropriate regulatory approvals and customary closing conditions.

As per the SPA, GRT would acquire the promoter’s stake for an aggregate value of up to Rs 1,033.71 crore. Assuming full acceptance by public, the open offer size will amount to Rs 431.09 crore, payable in cash, subject to the terms and conditions mentioned in the public announcement.

"The price per SPA sale share and such maximum aggregate consideration may be subject to downward adjustments (if any) in accordance with the provisions of the SPA), and subject to the satisfaction of certain conditions precedent as set out thereunder, which, inter alia, include receipt of the CCI Approval and Lenders’ Approval," TBZ told BSE.

Deloitte was the lead advisor to the transaction and Axis Capital acted as the financial advisor for GRT. Trilegal advised GRT as the legal counsel while Srihari & Co advised on financial and tax due diligence. AZB & Partners advised TBZ as its legal counsel and Ernst & Young LLP acted as the financial advisor for TBZ.

Shrikant Zaveri, Chairman & Managing Director of TBZ, said: "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."