The shares of Lotus Chocolate Company Ltd were locked in an upper circuit of 5 percent at Rs 122.95 levels on Friday. In the last five days, the shares of the company have been hitting the upper circuit and have gained approximately 25 percent.
The stock gained after Reliance Retail, the retail arm of Reliance Industries announced that it will acquire a 51 percent majority stake in the company. In addition to that, the company also plans to make an open offer to buy up to 26 percent additional stake.
As per the details of the agreement, Reliance Retail will acquire 6.5 lakh equity shares of the confectioner at a price per share of Rs 113 aggregating to Rs 74 crore.
Lotus Chocolate Company Ltd is engaged in the business of manufacturing chocolates, and cocoa products under its consumer products and gifting segments. It also produces cocoa butter, cocoa mass, and chocolate power under its industrial products division.
The shares of the company traded at Rs 19 a piece on BSE in December 2020. From there it has risen up to the current levels logging a multibagger return of 548 percent in two years.
In Q2FY23, Lotus Chocolate Company reported a total revenue of Rs 14.63 crore which declined from Rs 20.95 crore Year on Year (YoY). They reported a net loss of Rs 49 lakhs in the quarter under review as compared to a profit of Rs 1.52 crore in Q2FY22. The company has a market capitalization of Rs 157 Crore.
Written by Anoushka Roy
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