GRT Jewellers has signed an agreement to acquire a 74.12% stake in the jewelry chain Tribhovandas Bhimji Zaveri (TBZ) for Rs 1,034 crore. This transaction triggers a mandatory open offer for an additional 26% of the company's equity. The deal marks a major consolidation in the Indian retail jewelry market, though investors should watch for the impact of high debt and working capital needs.
GRT Jewellers India Private Limited has signed a definitive agreement to acquire a 74.12% controlling stake in the century-old jewelry chain, Tribhovandas Bhimji Zaveri Limited (TBZ). The deal, valued at approximately Rs 1,034 crore, marks a major shift in the Indian organized jewelry retail sector. Under the terms of the agreement, the existing promoter family, including Shrikant Gopaldas Zaveri, is expected to step down from the board and exit their shareholding once the transaction is completed.
Following the acquisition of the majority stake, SEBI regulations require GRT Jewellers to launch an open offer for an additional 26% of TBZ's outstanding shares. This process allows other shareholders the opportunity to sell their shares to the new promoter if they choose. The acquisition is currently subject to necessary regulatory approvals and customary closing conditions.
TBZ has shown strong operational growth recently, which likely influenced the interest from GRT Jewellers. The company reported a 196% year-on-year increase in consolidated net profit for the financial year 2026. In the first quarter of the current fiscal year (FY27), the company posted a standalone profit of Rs 32.9 crore. This performance highlights the potential GRT sees in integrating TBZ’s existing network of 37 stores into its own business operations.
Despite the recent profit growth, the company faces financial challenges that investors should monitor. As of March 2026, TBZ carried a total debt of Rs 786 crore. The jewelry retail sector is highly capital-intensive, requiring significant funds to maintain inventory and manage working capital. Any fluctuation in gold prices or changes in consumer buying habits can also pressure profit margins. Investors should watch how the new management addresses this debt and manages the inventory requirements that are typical of this sector.
For shareholders and market participants, the next important updates will involve the official timeline for the regulatory approvals and the specifics of the mandatory open offer. The market reaction on August 31, 2026, saw the stock trading at Rs 304.40, and the completion of this deal will mark a total change in the ownership and strategy for the TBZ brand.