Titan surges on acquisition of majority stake in jewellery firm

Titan Company was up 3.77% to Rs 430.40 at 10:47 IST on BSE after the company said it has signed a share purchase agreement for acquisition of about 62% stake in Carat Lane Trading for a purchase consideration of Rs 357.24 crore.

The announcement was made after market hours yesterday, 14 July 2016.

Meanwhile, the S&P BSE Sensex was down 112.28 points or 0.4% at 27,829.83.

On BSE, so far 1.55 lakh shares were traded in the counter as against average daily volume of 1.09 lakh shares in the past one quarter. The stock hit a high of Rs 434.95 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 421.70 so far during the day. The stock had hit a 52-week low of Rs 303 on 29 February 2016. The stock had outperformed the market over the past one month till 14 July 2016, surging 13.38% compared with 5.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 17.24% as against Sensex's 9.03% rise.

The large-cap company has equity capital of Rs 88.78 crore. Face value per share is Rs 1.

Carat Lane Trading is involved in the business of designing, manufacturing, trading and retailing of gems and jewellery. The company reported revenue of Rs 141 crore for the financial year ended 31 March 2016.

The acquisition is expected to be completed within 14 business days subject to completion of pre-closing conditions, Titan said.

Titan Company's net profit fell 14.4% to Rs 184.11 crore on 1.5% decline in net sales to Rs 2437.15 crore in Q4 March 2016 over Q4 March 2015.

Titan Company is into eyewear, watches and jewellery making business.

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