Two Reliance group firms – Reliance Consumer Products Ltd (RCPL) and Reliance Retail Ventures Ltd (RRVL), have announced an open offer to acquire a 26 per cent additional stake in Lotus Chocolate Company.
Lotus Chocolate’s shares were locked in at 5% upper circuit at ₹ 199.95 apiece. In fact, it has been on an up trend, ever since the plan was announced. Its shares zoomed 107.42% in the past 16 days to give multibagger returns. If an investor would have invested ₹ 1 lakh in the company’s shares 16 days ago, the value of their holdings would have been ₹ 2.07 lakhs today!
The companies will together acquire 33,38,673 shares (26.00% stake) of Lotus Chocolate from the open market at a fixed price of ₹115.50 per share, said a notice by DAM Capital, which is managing the offer.
As per the notice, the prime objective of the acquirers is to have a substantial holding of the equity shares voting rights and acquisition of sole control of the Lotus Chocolate Company.
The offer will aggregate to a total consideration of ₹ 38.56 crore (₹ 38,56,16,731.50) over the full acceptance, said an open offer-detailed public statement shared by the company with stock exchanges on Thursday. The open offer starts on February 21 and closes on March 6, said the public notice.
RCPL is the FMCG arm and a wholly-owned subsidiary of RRVL. The open offer follows RCPL’s announcement last week for the acquisition of 51 per cent stake of the paid-up equity share capital of Lotus from the current promoter and promoter group at a price of ₹ 113 per share aggregating to ₹ 74 crore.
After that, RCPL made a public announcement to acquire a 26 per cent stake in Lotus in accordance with the SEBI Takeover Regulations.
RRVL is a subsidiary of Mukesh Ambani-led Reliance Industries and is the holding company of all the retail businesses under the RIL group.
Lotus Chocolate shares have surged about 21% in a year’s period. Lotus Chocolate Company Limited is a manufacturer of chocolates, cocoa products and cocoa derivatives and its products include cocoa powder, cocoa mass and cocoa butter, catering to industrial and consumer demand.
Written by Simran Bafna
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