NHC Foods share price was locked in a 5% upper circuit on Thursday, 17 September, after the company announced plans to acquire controlling stakes in two food and beverage companies — Lotmor Brands Private Limited and Walya’s Beverages Private Limited.
NHC Foods Limited, which is engaged in the trading, processing and export of agricultural commodities, said its board has approved investments to acquire up to an 88% stake in Lotmor Brands and up to an 80% stake in Walya’s Beverages.
NHC Foods share price today opened at ₹2.05 apiece on the BSE, the stock touched an intraday high of ₹2.11, and an intraday low of ₹2.03 per share.
NHC Foods to acquire stakes in two companies
Under the proposed transactions, the consideration for the acquisitions may be paid in cash or through the issue of NHC Foods equity shares at ₹6.50 per share. The price may also be determined after six months in accordance with SEBI ICDR Regulations.
The company said the proposed acquisitions are aimed at strengthening its procurement and distribution capabilities while complementing its existing operations across the food and beverage value chain.
What does Lotmor Brands bring to NHC Foods?
Lotmor Brands, incorporated in 2018, operates across the trading and manufacturing of food and beverage products. The company reported a turnover of ₹246.11 crore in FY23 and ₹260.43 crore in FY24, while turnover stood at ₹179.74 crore in FY25.
According to NHC Foods, Lotmor’s established operations and positive cash flows could add complementary capabilities to its existing business and provide a platform for further expansion.
Walya’s Beverages acquisition
The second proposed acquisition, Walya’s Beverages, will add another food and beverage business to NHC Foods’ expansion plans. Incorporated in 2021, Walya’s is engaged in the manufacturing, trading, wholesaling, import and export of food and beverage products.
The company reported no turnover in FY23, before recording turnover of ₹71.48 crore in FY24 and ₹22.28 crore in FY25. NHC Foods said Walya’s presence across the food and beverage segment could help broaden its product portfolio and market reach.
What NHC Foods management said
Satyam Shirishchandra Joshi, Managing Director of NHC Foods, said the company intends to integrate the proposed acquisitions into its existing business rather than operate them independently.
“Our approach with these proposed acquisitions is to build on what we already have rather than operate these businesses in isolation,” Joshi said.
He added that NHC Foods aims to create stronger linkages across sourcing, processing, distribution and end markets by bringing complementary businesses into its ecosystem.
According to Joshi, the strategy could allow NHC Foods to participate in a wider part of the food business, make better use of its existing capabilities and relationships, and create a more scalable base for the company’s next phase of expansion.
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