Jewellery stocks were a mixed bag in early trade on Monday, with Tribhovandas Bhimji Zaveri (TBZ) climbing 5% to hit a fresh 52-week high, while several other retailers traded in the red. BlueStone Jewellery and Lifestyle was another notable gainer.
TBZ has remained in focus since GRT Jewellers proposed acquiring a 74.12 per cent stake in the company. The stock rose to Rs 633.70, hitting its upper price band, as investors continued to track the proposed transaction.
Why is TBZ in Focus?
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TBZ shares jumped 5% to Rs 633.70, hitting the upper price band and a fresh 52-week high. The stock has remained in focus following GRT Jewellers' proposed acquisition of a 74.12% stake in the company.
GRT Jewellers had agreed to acquire the entire promoter stake in TBZ for up to Rs 1,033.71 crore. The transaction also triggered a mandatory open offer for up to 25.88% of TBZ's shares at Rs 249.61 apiece.
Jewellery Stocks Performance
Around 11:19 am today, on NSE, Kalyan Jewellers India shares gained only 0.31% to trade at Rs 583.60, while Senco Gold declined 0.73% to Rs 345.45. Shares of Sky Gold and Diamonds were also marginally lower by 0.4% to Rs 780.90.
Thangamayil Jewellery fell 2.76% to Rs 4,905.5, while PC Jeweller declined 0.3% to Rs 12.75.
BlueStone Jewellery and Lifestyle, meanwhile, gained 2.69% to Rs 849.80, making it another gainer after TBZ.
What Is Weighing On Jewellery Stocks?
Jewellery stocks have remained sensitive to movements in gold prices and rising compliance costs. Gold and silver prices opened lower on the Multi Commodity Exchange on Monday, with the yellow metal falling Rs 1,331 per 10 grams in the early hours of the session.
Another recent industry development has been the increase in the gold hallmarking fee. The Bureau of Indian Standards raised the fee from Rs 45 to Rs 75 per gold article from Sept. 14. The higher per-article cost has emerged as an additional cost consideration for jewellers, particularly as the industry heads into the festive and wedding season.
Against this backdrop, jewellery stocks have seen divergent moves, with TBZ extending its gains while several established jewellery retailers traded lower on Monday.
Also Read: Gold Hallmarking Fee Up 67% To Rs 75 — What Customers Pay Now
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