Tribhovandas Bhimji Zaveri (TBZ) shares rallied 17.2 per cent to a record high on Wednesday, extending gains for the second consecutive trading session after GRT Jewellers agreed to acquire a controlling 74.12 per cent stake in the jewellery retailer, with investors expecting the deal to boost growth prospects.
The stock scaled a fresh 52-week high of ₹430 on the before trading 10 per cent higher at ₹400.40 at 10.57 am. It opened at ₹380, compared with the previous close of ₹366.80.
The stock had surged 20 per cent to the upper circuit in the previous trading session.
TBZ shares have continued to gain momentum for two consecutive trading sessions following the announcement of the share purchase agreement with the promoters of TBZ for the acquisition of a 74.12 per cent stake in the jewellery retailer.
GRT Jewellers, one of the biggest jewellery retailers in southern India, will acquire the 74.12 per cent stake from TBZ’s top shareholders for ₹10.34 billion, or ₹209 per share. The acquisition price represents a 31.6 per cent discount to TBZ’s closing price on Monday.
The Chennai-headquartered jeweller will also launch a mandatory open offer for the remaining 26 per cent stake.