CHENNAI: Tata Group company Titan on Saturday announced that it has signed a share purchase agreement with the founder of CaratLane Trading Private Limited to acquire all the shares held by them.
Titan will acquire the entire 91,90,327 equities held by the founder and his family members of the jewellery brand, representing 27.18 per cent of the equity for Rs 4,621 crore.
This marks the exit of CaratLane founder and managing director Mithun Sacheti from the company, which started as an online-first premium jewellery retail brand in 2008. Titan first invested in CaratLane in 2016 and over the past eight years, it continued to invest in the start-up and the brand.
With this deal, the shareholding of Titan in CaratLane has increased from 71.09 per cent to 98.28 per cent. This transaction is expected to be financed through a combination of cash balances, internal accruals and debt, according to the exchange filings by the company.
C K Venkataraman, Managing Director of Titan, said, “We believe that the growth journey of CaratLane has only begun and has a long way to go. We thank Mithun Sacheti, founder and managing director of CaratLane, for having jointly built a customer-centric brand that all of us in Tata Group can be proud of and wish him continued success in his future endeavours.”
Sacheti said, “Having dreamt of making beautiful jewellery accessible and affordable to all, I am immensely proud of what we have collectively achieved at CaratLane in the past 15 years and where the business stands today.”
Looking into the future, there couldn’t be a more ideal destination for CaratLane than Titan and the esteemed Tata Group which will provide the perfect opportunities for CaratLane to continue to grow, he added.