Titan is raising its stake in subsidiary CaratLane, which is engaged in the manufacture and sale of jewellery.

The Tata group firm is acquiring an additional 27.18 per cent stake for Rs 4,621 crore, which will raise its holding to 98.28 per cent.

In a regulatory filing on Saturday, Titan said it has signed a share purchase agreement with the founder of CaratLane — Mithun Sacheti and Srinivasa Gopalan — to acquire all the shares held by them, representing 27.18 per cent of its total paid-up equity share capital.

“CaratLane is a subsidiary of the company and the completion of the share purchase would result in an increase in Titan’s holding in CaratLane from 71.09 per cent to 98.28 per cent on a fully diluted basis,” a press statement said.

CaratLane Trading posted a turnover of Rs 2,177 crore in 2022-23 compared with Rs 1,267 crore in the previous fiscal.

Titan said the acquisition is likely to be completed by October 31, subject to the timely receipt of requisite regulatory approvals from the Competition Commission of India.

Commenting on the development, Titan managing director C.K. Venkataraman said, “Titan has always prided itself in building strong brands that are amongst the leaders in their categories. We have great faith in the India consumer story and believe that the growth journey of CaratLane has only begun and has a long way to go.

CaratLane was started as a purely online brand in 2008, looking at the fast-growing jewellery market. Titan said that while it first invested in CaratLane in 2016, over the past eight years, the arm has witnessed substantial growth in partnership with its jewellery brand Tanishq. CaratLane also has a presence in the US through its subsidiary.

“Looking into the future, there couldn’t be a more ideal destination for CaratLane than Titan,” CaratLane founder and managing director Mithun Sacheti said.