Titan share price extends gains on CCI approval for additional stake acquisition in CaratLane

Titan shares rose today after the company received approval from the Competition Commission of India to purchase an additional stake in its subsidiary CaratLane.

On November 21, Titan share price rose over a percent and crossed the market capitalisation of ₹3 lakh crore for the first time. Titan shares have gained over 11% in three months and are up more than 31% year-to-date (YTD).

The board of directors of Tata Group’s jewellery and watch retailer Titan Company had earlier approved the acquisition of the entire 91,90,327 equity shares held by the founder of CaratLane Trading Pvt Ltd and his family members representing 27.18% of the total paid-up equity share capital of CaratLane.

With this, Titan increased its shareholding in CaratLane to 98.28% from 71% for ₹4,621 crore.

In 2016, Titan first acquired a 62% stake in the omni-channel jewelry retailer CaratLane for ₹357.24 crore. It then continued to increase its stake in the company.

Titan Company reported a net profit of ₹940 crore in the second quarter of FY24, registering a growth of 9.7% from ₹857 crore in the corresponding quarter of last fiscal year.

Titan’s standalone revenue from operations in Q2FY24 increased 33.6% to ₹11,660 crore from ₹8,730 crore, YoY.

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Titan Company’s jewellery segment’s total income at ₹8,575 crore recorded an increase of 19% YoY. EBIT rises to ₹1,206 crore clocking an EBIT margin of 14.1% for Q2FY24 helped by better studded share in the portfolio.

Titan’s Watches & Wearables segment recorded a total Income of ₹1,092 crore during the quarter, up by 32% YoY, crossing ₹1,000+ crore of quarterly revenues for the first time in its journey.

At 10:05 am, Titan shares were trading 0.80% higher at ₹3,421.30 apiece on the BSE commanding a market cap of more than ₹3.03 lakh crore.