Mumbai: Shares of Tribhovandas Bhimji Zaveri Ltd. (TBZ) continued their sharp upward move on September 4, with the jewellery retailer locked in a 10% upper circuit at ₹472.50. The stock has gained around 56% in just five trading sessions, as investors continued to react positively to the proposed takeover of the company by GRT Jewellers.
At 10.02 am, TBZ shares remained locked at the 10% upper circuit, while the BSE Sensex was trading around 0.75% higher at 76,720. Trading activity in TBZ was also strong, with around 1.39 lakh shares worth ₹6.54 crore changing hands on the BSE and 33.12 lakh shares worth ₹156.27 crore traded on the NSE.
The sharp rally follows GRT Jewellers’ agreement to acquire a controlling 74.12% stake in TBZ from its existing promoters. The proposed transaction has turned the stock into one of the closely watched counters in the jewellery sector.
GRT Jewellers takeover triggers buying
The primary catalyst behind the recent rally is GRT Jewellers’ proposed acquisition of a 74.12% stake in TBZ.
GRT has agreed to acquire the promoter stake for up to ₹1,033.71 crore. The transaction values the acquisition at ₹209 per TBZ share, which was at a substantial discount to the market price after the stock began rallying.
Following completion of the acquisition, GRT is required to make an open offer for the remaining public shareholding under applicable Securities and Exchange Board of India regulations.
The prospect of a change in ownership and GRT’s plans to expand its presence in the Indian jewellery market have generated considerable investor interest.
TBZ stock has surged in a matter of days
TBZ’s rally has been unusually rapid.
The stock closed at ₹292.70 on August 31. It then jumped nearly 20% on September 1 to close at ₹366.80. On September 2, the stock extended its gains and touched ₹430 during the session.
The three-session gain through September 2 was around 46.9%. Following the extraordinary price movement, the applicable price band was reduced to 10%.
By September 4, the stock had moved further to ₹472.50 and remained locked at its 10% upper circuit during the morning session. The latest move takes the five-session gain to around 56%, according to the NDTV Profit report.
The rally has also been accompanied by a dramatic increase in trading volumes, indicating intense interest from market participants.
Why investors are positive about the deal
GRT Jewellers is a major jewellery retailer with a strong presence in southern India, while TBZ has an established footprint across other parts of the country.
The proposed acquisition could therefore give GRT a broader geographic presence and provide opportunities to combine its retail strength with TBZ’s existing network.
TBZ operates 37 stores and has a history stretching back 162 years. GRT has said the transaction is part of its strategy to expand its presence across India.
Investors appear to be pricing in the potential benefits of the ownership change, including possible operational improvements, expansion opportunities and greater scale.
However, these are expectations rather than guaranteed outcomes.
Open offer becomes another key trigger
The mandatory open offer is another factor investors are watching closely.
After acquiring the promoter stake, GRT is expected to make an offer for the remaining approximately 26% of TBZ’s equity, subject to the applicable regulatory process.
The outcome of the open offer could influence future ownership levels and the company’s status as a listed entity. If the open offer is fully accepted, GRT’s ownership could potentially approach the entire equity of TBZ.
For shareholders, the terms and progress of the open offer will therefore remain important developments.
Acquisition price is below current market price
One notable aspect of the transaction is the difference between GRT’s agreed acquisition price and TBZ’s market price after the announcement.
GRT has agreed to buy the 74.12% promoter stake at ₹209 per share. However, the market price subsequently moved substantially higher, reaching ₹472.50 on September 4.
Reuters reported that the ₹209 acquisition price represented a 31.6% discount to TBZ’s previous closing price when the deal was announced.
The sharp divergence between the transaction price and the market price highlights the extent to which investors have responded to the takeover announcement and future expectations.
Trading volumes surge
The price rally has been accompanied by a major increase in activity.
More than 12 million TBZ shares had changed hands by late morning on September 1, according to Reuters, equivalent to around 6.5 times the stock’s 30-day average volume.
The latest session has also seen significant turnover. NDTV Profit reported that more than 33 lakh shares worth ₹156 crore had traded on the NSE by 10.02 am on September 4.
Such activity shows that the takeover has substantially changed investor interest in the stock.
Price band limits volatility
TBZ’s 10% upper circuit on September 4 means the stock’s intraday movement is currently restricted by the applicable price band.
The exchange had reduced the price band to 10% after the stock’s exceptionally sharp gains earlier in the week.
An upper circuit does not indicate that a stock is fundamentally undervalued or that its price will continue rising. It simply means buying demand has pushed the stock to the maximum permitted price for that session under the applicable trading band.
Investors should therefore distinguish between strong market momentum and a fundamental re-rating of the business.
Investors should watch regulatory approvals
The proposed acquisition is not yet the same as a completed change in ownership.
The transaction remains subject to regulatory approvals and other closing conditions. Investors will consequently be watching the progress of the stake purchase, the mandatory open offer and the eventual ownership structure.
The company’s future under GRT will also depend on how effectively the two businesses integrate their operations and whether the expected expansion opportunities translate into stronger financial performance.
What’s next for TBZ?
TBZ has rapidly shifted from being a relatively quiet jewellery stock to a major market mover following the GRT takeover announcement.
The immediate triggers are likely to remain the completion of the promoter stake acquisition, regulatory approvals and details of the open offer. Beyond these events, investors will need to assess whether the proposed ownership change can improve TBZ’s growth, profitability and competitive position.
The stock’s 56% five-session rally demonstrates the market’s strong reaction to the deal, but such a rapid rise also highlights the heightened volatility surrounding the counter.
For investors, the key distinction is between the takeover-driven momentum in the share price and the longer-term financial benefits that GRT may eventually create. Until the transaction progresses and the post-acquisition strategy becomes clearer, TBZ remains a stock driven heavily by corporate-action expectations.