This chocolate maker's stock gives multibagger return of over 192% in just a month
1 min read 26 Jan 2023, 12:17 PM ISTLotus Chocolate shares have given multibagger return of more than 192% in just a month
PremiumContinuing its non-stop rally, shares of Lotus Chocolate Company Ltd have been hitting upper circuit level of 5% since December 23, 2022, surging from ₹96 level to currently trading at a fresh record high of ₹295 per share on the BSE. The stock has been in the gaining momentum after Reliance Retail's plan to buying stake in the company.
Lotus Chocolate shares have given multibagger return of more than 192% in just a month. 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 the industrial and the consumer demand.
Reliance group's Reliance Consumer Products Ltd (RCPL) and Reliance Retail Ventures Ltd (RRVL) announced an open offer recently to acquire a 26% additional stake in the chocolate maker company. RCPL is the FMCG arm and a wholly-owned subsidiary of RRVL, which is a subsidiary of Mukesh Ambani-led Reliance Industries Ltd (RIL) and is the holding company of all the retail businesses under the RIL group.
The firms will together acquire 33.38 lakh (33,38,673) shares of Lotus Chocolate from the open market at a fixed price of ₹115.5 per share. DAM Capital is managing the open offer which will start from February 21, 2023 and conclude on March 6, 2023. The offer will aggregate to a total consideration of ₹38.56 crore over the full acceptance.
The company had earlier said that Reliance Consumer, the fast-moving consumer goods (FMCG) arm of Reliance Retail, will acquire a 51% stake from promoters at ₹113 a share and will also subscribe to some non-noncumulative redeemable preference shares and will also make an open offer to acquire 26% from public shareholders of Lotus Chocolate.
