Royal Orchids gains Amartara, gains up

Stock of Royal Orchids Hotels, a small-cap company that operates and manages hotels and resorts, soared more than 10 per cent in intra-day trade after the company announced a major acquisition of Amartara Hospitality Private Limited with paid up share capital of Rs 35.5 crores. The acquisition was done on a cash basis for a consideration of Rs 2.5 crores. 

Royal Orchids Hotels has acquired 24.9 per cent shares in Amartara which has now become 100 per cent subsidiary of the former. Amartara, yet to commence its business, has posted 7.3 per cent growth in its revenue in FY16 and has shown a recovery in net losses from Rs 3.87 crore in FY15 to Rs 1.3 crore in FY16.

Royal Orchids deals in accommodation and food service activities comprising hotels, resorts and restaurants and also mobile food services. Company’s brands include Royal Orchid Central, Royal Orchid Suites and Regenta with 30 business and leisure hotels.