Lower Circuit Alert: Laundry Services Company entered into an MoU with Tech Riser Private Limited

Le Lavoir Limited announced a strategic move to accelerate its retail laundry business expansion by entering into a Memorandum of Understanding (MoU) with Tech Riser Private Limited on September 30, 2025. This agreement outlines Le Lavoir's plan to acquire a 51 per cent stake in Tech Riser. The target entity, which belongs to the IT Sector, specialises in developing digital platforms and software solutions designed to enable businesses, particularly the retail laundry sector, to transition to a digital retail model by handling online Order Booking, tracking, payments, and backend operations. The acquisition is key to Le Lavoir's strategy to diversify its business portfolio, leverage Tech Riser's technology expertise, and extend its reach to a broader customer base through a robust digital platform, thereby aiming to drive growth and create long-term value in the fast-evolving service sector.

The consideration for this acquisition will be paid via a share swap, where Le Lavoir Limited will issue its own shares to the promoters of Tech Riser Private Limited. The number of shares issued by Le Lavoir will be calculated based on its prevailing market price on the date the MoU was signed. Tech Riser Private Limited is a recently incorporated firm with an authorised, subscribed, and paid-up capital of the company. The transaction is not considered a related party transaction and is subject to necessary approvals, with the completion process indicative upon the timely receipt of these approvals. The cost of the acquisition includes the market value of the exchanged shares and associated transaction costs.

Le Lavoir Limited (earlier Radhey Trade Holding Ltd) is a listed company for more than 4 decades and is listed on BSE Limited. The Company is in the business of Laundry Services, catering to institutions such as Hotels for their dry cleaning and laundry services on an outsourced model. Under the brand name of "Le Lavoir", we are a responsible organisation and maintain all the required safety and hygiene standards while providing these services. We plan to expand our footprint across India over the next 2 years. Aided by a strong management team and assisted by its sharp business acumen, the company is confident and aims to garner a huge clientele over the coming years.

The company has a market cap of over Rs 100 crore and on October 07, 2025, the stock hit a 5 per cent Lower Circuit to Rs 300.30 per share. The stock is up over 60 per cent from its 52-week low of Rs 186.20 per share.

Disclaimer: The article is for informational purposes only and not investment advice.