Spice Lounge Food Works share price will be in focus on Wednesday after the company’s board of directors approved expansion into luxury hospitality with the acquisition of Rightfest Hospitality LLP, and evaluated buying a majority stake in Blackstone Management LLC.
In the previous trading session on Tuesday, Spice Lounge Food Works share price was locked-in at 5% upper circuit of ₹47.52 apiece on the BSE.
The Board of Directors of Spice Lounge Food Works held its meeting on October 28 to consider and approve two key proposals for expansion into luxury hospitality.
Acquisition of Rightfest Hospitality LLP
The board of directors of Spice Lounge Food Works passed a resolution for acquisition of 100% stake in M/s Rightfest Hospitality. The acquisition of shares is likely to be completed within 12 months from the date of execution of the agreements.
Rightfest Hospitality LLP operates acclaimed lifestyle venues such as SALUD, Goa and XORA Bar & Kitchen, Hyderabad.
“The acquisition is of strategic nature inter alia results in growth opportunities in line with horizontal business expansion and revenue growth. This underscores SLFWL’s commitment to expanding beyond culinary excellence into the premium nightlife and experiential entertainment domain, tapping into a sector witnessing rapid growth across metros and tourist destinations,” said Spice Lounge Food Works.
The Board of directors of Spice Lounge Food Works Ltd has authorised Mr. Mohan Babu Karjela to oversee and conclude the acquisition process and related formalities in consultation with the committee formed in this regard, it added.
Potential acquisition of majority stake in Blackstone Management LLC
The company’s board also authorized Chairman Mohan Babu Karjela to evaluate a potential majority stake acquisition in Blackstone Management LLC.
“Mohan Babu Karjela has been empowered to negotiate investment terms, and conclude the transaction in consultation with legal, financial, and strategic advisors,” said the company.
Spice Lounge Share Price Performance
Spice Lounge share price has rallied 21% in one month and 30% in three months. The smallcap stock has jumped 321% in six months and has delivered multibagger returns of 400% on a year-to-date (YTD) basis. Over the past five years, Spice Lounge Food Works shares have jumped by a staggering 3,960%.
On Tuesday, Spice Lounge Food Works share price ended 5% higher at ₹47.52 apiece on the BSE.
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