TBZ shares jump 72% in six sessions: What's driving the rally?

Shares of Tribhovandas Bhimji Zaveri (TBZ) extended their gains for the sixth consecutive session on Monday, surging 10 per cent to hit a one-year high of Rs 519.75. At this level, the stock has gained 72.18 per cent in six trading sessions.

The sharp rally followed GRT Jewellers India's agreement on August 31 to acquire a 74.12 per cent stake in the jewellery retailer from its promoters at Rs 209 per share.

Under the share purchase agreement (SPA), GRT Jewellers will acquire the promoters' stake for an aggregate consideration of up to Rs 1,033.71 crore. The transaction is subject to regulatory approvals and customary closing conditions.

GRT Jewellers will also make an open offer for an additional 26 per cent stake in TBZ at Rs 249.61 per share, in accordance with applicable Securities and Exchange Board of India (Sebi) regulations.

Why are TBZ shares rallying?

Kranthi Bathini, equity strategist at WealthMills Securities, said the agreement is largely positive for TBZ and could help the company expand its footprint in southern India.

Bathini advised existing investors to hold the stock and recommended fresh buying on dips with a long-term investment horizon. He also noted that the recent correction in gold prices has marginally improved affordability ahead of the festive and wedding demand season.

Ravi Singh, Chief Research Officer at Master Capital Services, said the sharp move reflects expectations of a potential strategic turnaround under GRT's ownership, supported by TBZ's improved FY26 operating performance.

"Revenue stood at Rs 3,203 crore, EBITDA at Rs 369 crore, with margins improving to 12 per cent, while PAT reached Rs 202 crore. However, elevated borrowings of Rs 886 crore and finance costs of Rs 77 crore remain key concerns," Singh said.

Singh also highlighted that the stock has already gained more than 70 per cent in September and is currently under ASM Stage 1, or the Additional Surveillance Measure framework.

Why the selling price differs from the market price?

TBZ's promoters are selling their 74.12 per cent stake to GRT Jewellers through a negotiated transaction rather than an open-market sale.

The market price of a stock and the price agreed for a large stake sale can differ. In a negotiated transaction, the buyer and seller agree on the price and other terms for the block of shares.

Selling a large stake through the open market could increase the supply of shares and put pressure on the stock price. A negotiated deal allows the buyer and seller to agree on the terms of the transaction without selling the entire holding in the open market.