This packaged food company's share price has zoomed over 100% in 3 weeks

Shares of Lotus Chocolate hit a new high of Rs 209.90 today. They were locked at 5 per cent upper circuit for 16th straight day

Shares of Lotus Chocolate Company (Lotus) hit a record high of Rs 209.90 as they were locked in the 5-per cent upper circuit band on the BSE on Monday. By comparison, the S&P BSE Sensex was down 0.10 per cent at 60,198 at 01:14 PM. Around 13,000 equity shares had changed hands and there are pending buy orders for 96,821 on shares on the BSE till the time of writing of this report, the exchange data shows.

The stock of the packaged foods company was locked in the upper circuit for 16th straight day. It has zoomed 118 per cent from a level of Rs 96.40 seen on December 23, 2022.

Lotus is engaged in the business of manufacture, trade, sale, import and export of ice cream covering, cocoa derivatives and chocolate products (both pure chocolates as well as compound variants).

On December 29, Reliance Consumer Products (RCPL), a wholly-owned subsidiary of Reliance Retail Ventures, had made an open offer to acquire 3.34 million shares, or 26 per cent stake, in Lotus at offer price of Rs 115.50 per share.

RCPL will acquire 51 per cent controlling stake in Lotus for Rs 74 crore, and also make an open offer to acquire up to 26 per cent additional state, Reliance Industries had said in an exchange filing.

Further, RCPL and certain promoter group entities of Lotus agreed to subscribe to 50.79 million non-cumulative redeemable preference shares of face value of Rs 10 each at par.

"The capital infused by RCPL will help drive the growth and expansion of Lotus into a comprehensive confectionery, cocoa, chocolate derivatives, and related products manufacturer across industrial and consumer market spectrum backed by state-of-the-art manufacturing, best in-class processes & people," the filing said.

Meanwhile, DAM Capital Advisors, the manger of open offer, has said that tentatively open offer will open on February 21, 2023 and close on March 6, 2023.