Reliance Consumer Products Limited, a subsidiary of Reliance Retail Ventures, has bought 51% stake in Lotus Chocolate Company. For Rs 74 crore, 65,48,935 shares of Lotus have been acquired at a price of Rs 113.00 per share. It has also announced to bring an open offer for an additional 26% (33,38,673 shares) stake in Lotus. Reliance Retail gave this information in its regulatory filing.
After this agreement of Reliance, shares of Lotus Chocolate climbed 5% during Friday's trading. It increased by Rs 5.85 to reach Rs 122.95. The stock has gained Rs 24.50 or 24.89% in 5 trading days. On the other hand, if we talk about one year, the company has given a return of 10.92%. A year ago on 30 December 2021, the share price was Rs 110.85. The company has given a return of 410% in 5 years.
Isha Ambani, Executive Director, Reliance Retail Ventures, said, “Reliance is excited to partner with LOTUS, who have built a strong cocoa and chocolate derivatives business. Our investment in Lotus underlines our commitment to further promote indigenously developed daily use high quality products. We look forward to working with the experienced management team at Lotus.
Lotus Chocolates is one of the leading manufacturers of the finest chocolates, cocoa products and cocoa derivatives. Incorporated in 1988, the company started operations in 1992. The promoters of the company at that time were T Sharada (famous South Indian film actor) and Vijayaraghavan N (engineer). In 2008, the company was taken over by Hyderabad-based businessmen Prakash Pai and Anant Pai as promoters.
The company launched its products under the brand names of 'Chuckles', 'On and On', 'Super Care' and 'Tango' which became quite popular. The company's range of Pure Cocoa Butter Chocolates, and its derivatives like Cocoa Butter and Cocoa Powder have entered the industrial market as well as bakeries and top 5 star hotel kitchens in India. The company also manufactures gifting chocolates for different occasions.