Le Lavoir Ltd acquires majority stake in Ghantiram Foods Pvt Ltd

Le Lavoir Ltd (BSE: 539814), a service provider to India's leading hotel chains, announces the acquisition of Rajkot based Ghantiram Foods Private Limited, a manufacturer and trader of packaged food items. Post acquisition, Le Lavoir will own a 64.5% stake in Ghantiram Foods Private Limited. This is an all-equity transaction with no cash outflow for Le Lavoir. As a part of the deal, the promoters of Ghantiram Foods Private Limited will receive shares in Le Lavoir Limited. This acquisition aligns with Le Lavoir's existing businesses, which serve clients in the hospitality sector.

"We are already a leading provider of laundromat services to the hospitality sector amongst the listed company universe. This acquisition expands the portfolio of services that we provide for our existing clients in a fast-growing industry," said Dr. Ashoak Kumar Jain, Chairman, Le Lavoir Limited. "We plan to invest ₹ 10 crore in Ghantiram Foods Private Limited in capex along with the requisite working capital over the next 2 years. This will expand operations and scale up the business for the food business vertical," Dr. Jain added. Le Lavoir Ltd is already raising capital for this expansion, and other strategic initiatives via a preferential allotment of warrants to investors.

Le Lavoir's pioneering approach has made it a leading vendor to leading Indian hotel brands. The company is set to expand its operations to Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Goa, Ahmedabad, Jaipur, and Surat over the next two years, from its existing base in Mumbai. India's hospitality sector has an estimated size of over $250 billion, and is projected to grow strongly driven by leisure travel, tourism, business travel, and MICE (Meetings, Incentives, Conferences and Exhibitions. The sector is becoming more organized, and leading chains are seeking vendors and suppliers who can help them provide a uniform and high-quality experience across India.

Shares of LE Lavoir Ltd was last trading in BSE at Rs. 323.40 as compared to the previous close of Rs. 330.00. The total number of shares traded during the day was 1294 in over 17 trades.

The stock hit an intraday high of Rs. 323.40 and intraday low of 323.40. The net turnover during the day was Rs. 418479.00.

Source : Equity Bulls

Keywords

LELavoir INE204S01012 MajorityStake Acquisition GhantiramFoods