Tribhovandas Bhimji Zaveri shares hit an upper circuit of ₹480.85 as investors respond to GRT Jewellers' plan to acquire a majority stake. With shares now trading nearly double the mandatory open offer price of ₹249.61, investors are closely watching the gap between the market valuation and the proposed tender price.
Tribhovandas Bhimji Zaveri (TBZ) shares touched the upper circuit limit of ₹480.85 on the National Stock Exchange this Friday. This upward movement follows the announcement that Chennai-based GRT Jewellers India Private Limited has entered into a definitive agreement to acquire a controlling 74.12 per cent stake in the 150-year-old jewellery retailer. The deal, valued at approximately ₹1,033.71 crore, has driven intense trading interest, with significant buy orders queued on both major exchanges.
The transaction includes a mandatory open offer for an additional 26 per cent of the company’s equity held by the public. GRT Jewellers has proposed to purchase these shares at ₹249.61 each, totaling an investment of ₹431.10 crore. This structure is a standard regulatory requirement in India when an acquirer takes control of a listed entity.
A key point for investors to consider is the significant gap between the current market price and the open offer price. The stock is currently trading at nearly double the ₹249.61 price offered in the tender. Investors buying at the current market price of ₹480.85 should be aware that this is significantly higher than the price set by the acquirer for the mandatory open offer. This difference suggests that the market may be pricing in expectations beyond the immediate acquisition terms, or that retail interest is heavily outweighing the offer valuation.
The company operates a network of 19 stores across Maharashtra and Gujarat. Its business model focuses heavily on diamond-studded jewellery, which contributes roughly 30 per cent to its total revenue. The jewellery sector in India has been undergoing a steady shift toward organized retail players. This transition is supported by increasing regulatory transparency and the adoption of standardized hallmarking practices, which help established brands gain market share over smaller, unorganized players.
While the announcement has sparked optimism, the deal remains subject to various customary closing conditions and regulatory approvals, including clearance from the Competition Commission of India. GRT Jewellers has indicated that it has no current intention to delist the company, meaning TBZ is expected to remain a publicly traded entity after the acquisition process is complete. Investors should monitor future updates regarding the timeline for the open offer, regulatory clearances, and any potential adjustments to the final payout terms that may follow post-acquisition audits.