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Tata Group company Titan plans to take a loan to buy a stake in its subsidiary Caretlane. According to a Business Standard report, Titan is considering taking a partial loan. However, no official statement has been issued by the company yet.
Here are the deal details: Branded jewelery maker Titan has announced to buy 27.18 per cent stake in Caratlane. Similarly, its total holding in Caretlane will increase to 98.28 percent. The Tata Group-controlled company has entered into a share purchase agreement to acquire 91.90 lakh equity shares from Caretlane Trading Pvt Ltd and its family members.
Titan informed that Caretlane is a subsidiary of Titan and after the above share purchase, the company’s shareholding in Caretlane will increase from 71.09 percent to 98.28 percent. On the value of the deal, Titan said it will pay 21.18 per cent equity stake in Caretlane at Rs. 4,621 crore will be paid.
Deals till October: Titan expects to complete the deal by October 31, 2023. It is pending approval from the Competition Commission of India (CCI). Explain that Caretlane Trading is an unlisted company and had a turnover of Rs 2,177 crore in the last financial year. The company also manufactures and sells jewellery.