Titan Shares Rise Post 67% Stake Acquisition In UAE-Based Damas Jewellery

Shares of Titan Company Ltd., rose nearly 0.55% on Tuesday after the company announced the acquisition of a majority 67% stake in UAE-based Damas Jewellery in an all-cash deal, a move which helps the Tata group-managed firm to expand business in GCC countries.

Titan's wholly-owned subsidiary Titan Holdings International FZCO on Monday signed a definitive agreement with Mannai Corporation for the purchase of its 67% shareholding in Damas LLC (UAE), the current holding company for Damas jewellery business in GCC countries.

"The consideration for the proposed transaction is arrived on the basis of the enterprise value of AED 1,038 million (nearly Rs 2,438.56 crore)," said a joint statement on Monday.

Shares of Titan rose as much as 0.55% to Rs 3,452 apiece. They pared gains to trade 0.41% higher at Rs 3,447 apiece, as of 9:25 a.m. This compares to a 0.19 % advance in the NSE Nifty 50.

The stock has risen 5.96% in the last 12 months and 6% year-to-date. Total traded volume so far in the day stood at 0.08 times its 30-day average. The relative strength index was at 23.38.

Out of 35 analysts tracking the company, 23 maintain a 'buy' rating, seven recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.3%.