TBZ Share Price Surges 20% Despite Jewellery Stock Sell-Off: GRT Jewellers Deal Triggers Rally

Jewellery stocks came under pressure in Tuesday’s trading session after Prime Minister Narendra Modi urged Indians to avoid buying gold unless it is absolutely necessary. Shares of major jewellery companies, including Titan, Kalyan Jewellers and Thangamayil Jewellery, declined as investors assessed the potential impact of weaker discretionary gold demand.

However, Tribhovandas Bhimji Zaveri (TBZ) shares moved sharply in the opposite direction, hitting the 20% upper circuit. The rally was driven by a major company-specific development: GRT Jewellers has agreed to acquire a 74.12% controlling stake in TBZ for up to ₹1,033.71 crore. The transaction also triggers a mandatory open offer for the remaining public shareholders.

Jewellery Stocks Fall: Titan, Kalyan and Thangamayil Under Pressure

On the NSE, several jewellery stocks traded lower following PM Modi’s appeal.

Titan Company: ₹5,050, down ₹52.50 or 1.03%

Kalyan Jewellers India: ₹587.45, down ₹13.55 or 2.25%

Thangamayil Jewellery: ₹5,333.50, down ₹78.50 or 1.45%

Bluestone Jewellery & Lifestyle: ₹807.40, down ₹10 or 1.22%

Market reports said jewellery stocks remained under pressure as investors considered whether the Prime Minister’s appeal could affect gold demand, particularly discretionary purchases during the festive and wedding season.

What Did PM Modi Say About Gold Buying?

Prime Minister Narendra Modi urged citizens to exercise restraint when purchasing gold, saying that gold should be bought only when absolutely necessary.

The appeal is part of a broader message encouraging consumers to support domestic economic activity and reduce unnecessary foreign-exchange outflows. Gold imports are an important consideration for India’s external balance, making changes in domestic gold demand relevant to the broader economy.

This is not the first time PM Modi has made such an appeal. His latest remarks have once again put the spotlight on the potential impact of gold demand on jewellery retailers and related stocks.

Why Did TBZ Share Price Jump 20%?

While most jewellery stocks declined, TBZ shares hit the 20% upper circuit on September 1, reaching ₹366.50 on the BSE.

The immediate trigger was GRT Jewellers’ agreement to acquire a 74.12% stake in Tribhovandas Bhimji Zaveri from its promoters. The transaction is valued at up to ₹1,033.71 crore and represents a change in control of the listed jewellery retailer.

GRT has also agreed to launch a mandatory open offer for approximately the remaining 26% of TBZ, in accordance with applicable takeover regulations.

GRT-TBZ Deal: What Investors Need to Know

Under the agreement, GRT is acquiring 74.12% of TBZ from the promoter group. The disclosed transaction price is capped at ₹209 per share, with the overall consideration potentially reaching ₹1,033.71 crore.

The acquisition gives GRT control of TBZ and is part of its strategy to expand its retail presence across India. TBZ operates a network of jewellery stores, giving GRT an opportunity to expand its geographical footprint and combine the strengths of both businesses.

G.R. Ananthapadmanabhan, Managing Director of GRT Jewellers, said the transaction fits the company's strategy of expanding its presence across India.

R. Vijayaraghavan, Executive Director and CEO of GRT Jewellers, also highlighted the potential for GRT’s management team and TBZ’s senior executives to work together on growth initiatives.

Why TBZ Rose While Other Jewellery Stocks Fell

The contrasting market reaction is largely explained by the different catalysts affecting the stocks.

For Titan, Kalyan Jewellers and other jewellery companies, PM Modi’s gold-buying appeal raised concerns about possible pressure on discretionary jewellery demand. At the same time, some stocks were also affected by broader market movements and profit booking.

For TBZ, however, the GRT acquisition became the dominant market catalyst. Investors focused on the proposed change in ownership, the mandatory open offer and the potential business synergies from the transaction.

Therefore, TBZ’s 20% rally should not be interpreted as a rejection of the broader concern over gold demand. It was primarily driven by the takeover-related announcement.