Lotus Chocolate Stocks Hit the Upper Circuit

Significant gains in the financial services, banking and metal sectors enabled Indian headline indices to get off to a roaring start this week. With gains of more than 3%, Mahindra & Mahindra led the BSE Sensex rally as shares surged due to optimism sparked by a robust quarter performance. At 12:35 pm, the BSE Sensex climbed 0.61%, reaching a level of 62,884. The Nifty 50 index surged 0.59% to the 18,607 level.

While the majority of small-cap stocks gained, Lotus Chocolate Company Ltd, a small-cap packaged food stock, attracted investors with its robust uptrend. On an intraday basis on Monday, shares of Lotus Chocolate Company Ltd soared and locked at a 5% upper circuit, trading at Rs 160 per share on the BSE.

After receiving favourable news from the Reliance subsidiary, shares of Lotus Chocolate Company have locked at the upper circuit for a second consecutive session. Reliance Consumer Products Ltd, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Ltd, has completed the acquisition of a 51% controlling stake in Lotus Chocolate Company for an aggregate consideration of Rs 74 crore, as well as the subscription to non-cumulative redeemable preference shares for an aggregate consideration of Rs 25 crore.

Shares of the company have skyrocketed more than 200% in the month of January 2023, following the announcement by Reliance Consumer Products Ltd that it will purchase a 51% controlling stake in the company.

Lotus Chocolate Company, a BSE-listed company, is one of India’s select manufacturers of the finest chocolates, cocoa products, and cocoa derivatives. The company has a fully integrated manufacturing facility and is built with the best technologies and expertise from across the world. Products of the company are sold to chocolate manufacturers and chocolate consumers all over the world, from local bakeries to multinational corporations.

Keep a close eye on this stock for the upcoming sessions!