Tata group firm Titan Company had first picked up a majority stake in online jewellery brand and retailer CaratLane for Rs 357.24 crore in July 2016
Tata group firm Titan has increased its stake in jewellery subsidiary CaratLane to 69.47% with an investment of Rs 99.99 crore.
“In response to offer of shares made by Carat Lane Trading Private Limited, a subsidiary of the company, the company has subscribed to 30,48,780 additional equity shares of CaratLane thereby increasing its stake in CaratLane on March 30, 2019. The shareholding of the company in CaratLane has increased from 66.39% to 69.47%” Titan said in the regulatory filing on Sunday.
CaratLane is in the business of manufacturing and sale of precious and semi-precious jewellery through its e-commerce business and also through retail showrooms. The company registered a revenue of Rs 292.5 crore for the year ended March 2018.
Tata group firm Titan Company had first picked up a majority stake in online jewellery brand and retailer CaratLane for Rs 357.24 crore in July 2016. At the time, Titan had said that the acquisition will have “very high synergy” with its jewellery business Tanishq.
In February last year, ET reported that CaratLane has stopped selling on Amazon and Flipkart, citing very little contribution from these platforms. CEO Mithun Sacheti had told ET at the time that these platforms contributed only 0.2% each to CaratLane’s sales.