Chennai's GRT to scoop 74% stake in Mumbai's TBZ for Rs 1,034 crore

CHENNAI: GRT Jewellers India Private Limited (GRT), on Monday announced signing of share purchase agreement (SPA) with the promoters of listed jewellery retail company, Tribhovandas Bhimji Zaveri Limited (TBZ), to acquire their stake of 74.12% in the company.

As per the SPA, GRT would acquire the promoter’s stake for an aggregate value of up to Rs 1,033.71 crore, as per an exchange filing.

The consummation of the SPA will be subject to appropriate regulatory approvals and customary closing conditions. GRT will also be launching an open offer for another ~26% as per applicable SEBI regulations.
On the acquisition of the 162-year-legacy brand TBZ, GR ‘Ananth’ Ananthapadmanabhan, managing director, GRT Jewellers, said "this very well fits into our strategy of spreading our presence across India with TBZ having 37 stores."

GR Radhakrishnan, MD, GRT Jewellers, said "this acquisition is truly transformative for GRT. Our long-awaited aspiration of building a meaningful pan-India presence is now becoming a reality."
R Vijayaraghavan, executive director-CEO, GRT Jewellers, who spearheaded the acquisition process for GRT, said "experienced management bandwidth of GRT combined with professional senior executives of TBZ will work on several growth drivers to take TBZ to newer heights."
Both brands would operate simultaneously and efforts would be put in to grow them. The funding had been done through internal accruals, he told DT Next.

Shrikant Zaveri, chairman-MD, TBZ, said "What began five generations and 162 years ago as a single storefront in Zaveri Bazaar and a family dream has grown into 37 locations across the country."
He also highlighted the role of his two daughters, Binaisha and Raashi, in the past 20 years to scale the business.

GRT Jewellers, founded by the chairman G Rajendran in 1964, is an established leading jewellery retailer with 68 stores across India and one store in Singapore, with over 12,000 employees.  

GRT Jewellers has around 6.50 lakh sq.ft of retail space and has good presence in the ecommerce space and also operates few sub brands like Oriana for light weight affordable jewellery in gold and diamonds and also Silvana for silver jewellery collections.  

TBZ began in 1864 with the vision of Late Bhimji Zaveri with a single flagship store in Zaveri Bazar. TBZ has continued to strengthen its legacy through exceptional craftsmanship, uncompromising quality and customer-first innovations.

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.

LEGACY LEVERAGE

• GRT Jewellers, founded by chairman G Rajendran in 1964

• Established leading jewellery retailer with 68 stores across India and one store in Singapore, with over 12,000 employees

• GRT Jewellers has around 6.50 lakh sqft retail space

• Good presence in ecommerce space

• Operates few sub brands like Oriana for light-weight affordable jewellery in gold and diamonds and also Silvana for silver jewellery collections

• TBZ began in 1864 with vision of Late Bhimji Zaveri as a single flagship store in Zaveri Bazar

• Pan-India retail presence through 37 stores helps TBZ to stay close to its customers and respond to their evolving preferences

• Deloitte lead advisor to the transaction

• Axis Capital acted as GRT's financial advisor

• Trilegal advised GRT as legal counsel

• Srihari & Co advised on financial and tax due diligence

• AZB & Partners advised TBZ as its legal counsel

• Ernst & Young LLP acted as TBZ's financial advisor