This marks the stock’s best week in more than six years. It had previously witnessed weekly gains of over 54.72% in the trading week of May 31, 2020.
The rally follows GRT Jewellers’ announcement, at the beginning of this week, of its plans to acquire a 74.12% stake in TBZ from its promoters. The news had sent the company’s shares surging up to 20% in trade on Tuesday, September 1, a day after the announcement was made, marking a strong start to the month.
GRT Jewellers entered into a share purchase agreement with TBZ’s promoters to acquire the 74.12% stake in the jewellery retailer at ₹209 per share. The deal valued the transaction at around ₹1,033.7 crore.
Following the acquisition, GRT Jewellers plans to launch an open offer for an additional 26% stake from TBZ’s public shareholders at ₹249.60 per share.
TBZ shares were locked in a 10% upper circuit as they an intraday and fresh record high of ₹480.85 apiece on Friday. The stock has surged more than 191% since the start of the year and more than 159% over the trailing 12-month period.
More than 1 lakh shares of the company changed hands during intraday trade, with the stock trading at 5.29 times its 10-day average volume.According to the latest shareholding data available on the stock exchanges, 74.12% of the company’s total shares were held by promoters, while public shareholding accounted for 25.88%. Foreign institutional investors held 1.47%.
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