Titan's stock rises as it gets approval to acquire an additional stake in CaratLane by CCI, signaling investor confidence
Titan Company Limited's share price witnessed an all-time-high level on Wednesday following the approval granted by the Competition Commission of India for the luxury accessory manufacturer to acquire an additional stake in its subsidiary, CaratLane.
Previously, Titan Company, the jewelry and watch retailer within the Tata Group had received approval from its board of directors for the acquisition of the 27.18 per cent stake in CaratLane. This stake included 91,90,327 equity shares held by the founder of CaratLane Trading Pvt Ltd and his family members.
Titan's shareholding increased from 71 per cent to 98.28 per cent, making a Rs 4,621 crore investment to strengthen its presence in the luxury accessory market.
At 11:20 am, the shares of Titan Company Ltd. were trading at Rs 3,423 price level, up by almost 29 points on the National Stock Exchange.
In Q2FY24, Titan Company reported a 9.70 per cent increase in its consolidated net profit, reaching to Rs 940 crore compared to Rs 857 crore in the corresponding period last year.
In the September quarter, revenue from operations witnessed a notable 33.6 per cent rise, reaching Rs 11,660 crore, compared to Rs 8,730 crore in the corresponding period of the previous fiscal year. While the jewelry business reported a total income of Rs 8,575 crore, marking a significant 19 Per cent year-on-year increase.
On a year-to-date basis, the shares of the luxury accessory manufacturer have soared to more than 33 per cent or 857 points on the National Stock Exchange.