Shares of Lotus Chocolate Company (Lotus) hit an all-time high of Rs 209.90 on Monday as they locked in the 5% cap on the BSE. In contrast, the S&P BSE Sensex was down 0.1% at 60,198 at 1:14 pm. According to exchange data, about 13,000 shares had changed hands as of writing this report, with 96,821 pending buy orders on BSE shares.

Shares of the packaged food company hit a record high for the 16th straight day. It was up 118% from Rs 96.40 on December 23, 2022.

Lotus is engaged in the manufacture, trade, sale, import and export of ice cream rinds, cocoa derivatives and chocolate products, including plain and compound chocolate.

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

RCPL will acquire a controlling 51% stake in Lotus for Rs 74 crore and open a tender offer for an additional stake of up to 26%, Reliance Industries said in a filing to the exchange.

Also, certain promoter group entities of RCPL and Lotus have agreed to subscribe for 50.79 million non-cumulative redeemable preference shares of Rs 10 each.

“The capital injection by RCPL will help drive the growth and expansion of Lotus to become an integrated manufacturer of confectionery, cocoa, chocolate derivatives and related products, covering both industrial and consumer market segments, with state-of-the-art manufacturing technology, the most advanced products are supporting processes and people,” the document said.

At the same time, DAM Capital Advisors, the public offering manager, stated that the tentative public offering would start on February 21, 2023, and end on March 6, 2023.