Tribhovandas Bhimji Zaveri soars to record high on growth optimism after GRT Jewellers deal

Tribhovandas Bhimji Zaveri (TBZ) hit a record high of 366.80 rupees on Tuesday, climbing close to 20 per cent and touching the daily ceiling set by the exchange, according to Business Recorder. The rally followed an agreement under which GRT Jewellers will buy a controlling holding in the Indian jeweller. Investors are expecting the new promoter to bring a fresh phase of growth.

GRT Jewellers, a major retailer in southern India, plans to acquire a 74.12 per cent stake from TBZ's leading shareholders for 10.34 billion rupees, equivalent to $109.03 million. The price of 209 rupees per share sits 31.6 per cent below Monday's closing level. Once the purchase is done, the buyer must also launch an open offer for the other 26 per cent holding.

Analysts at ICICI Direct said the tie-up would combine GRT's southern strength with TBZ's long-standing western base. GRT runs 68 stores in India and one in Singapore, while the 162-year-old TBZ operates 37 outlets. Trading volume had passed 12 million shares by late morning, roughly 6.5 times the average daily volume over the previous 30 days.