Rs 2 Stock Makes A Big Move: Two Acquisitions Could Change Its Business Story

NHC Foods Ltd. has approved proposals to acquire majority stakes in food and beverage companies Lotmor Brands Private Ltd. and Walya’s Beverages Private Ltd., marking a potential expansion of its procurement and distribution network.

The board, which met on September 16, 2026, authorised investments to acquire up to 88 per cent of Lotmor Brands and up to 80 per cent of Walya’s Beverages. Both transactions are subject to six months of due diligence, and NHC Foods has not disclosed the proposed acquisition cost, number of shares to be bought or the eventual ownership level it expects to secure.

The company said the target businesses would add procurement and distribution capabilities to its existing operations. It also said their positive cash flows could strengthen NHC Foods’ financial position, while the listed company could support their further business expansion.

NHC Foods operates across domestic trading, manufacturing and international trading, with its annual report identifying food products, spices and trading as key parts of its operating profile. The company also has a carbonated soft drinks and packaged drinking water plant at Bhiwandi in Maharashtra. The proposed investments therefore extend its presence in adjacent food and beverage activities rather than representing a move into an unrelated sector.

However, the reported revenue scale of the two targets remains modest compared with NHC Foods’ consolidated business. Lotmor Brands reported FY25 turnover of Rs 1.80 crore, while Walya’s Beverages recorded turnover of about Rs 0.22 crore. Their combined turnover of roughly Rs 2.02 crore is equivalent to about 0.34 per cent of NHC Foods’ FY26 consolidated revenue from operations of Rs 601.31 crore.

Lotmor’s turnover had declined from Rs 2.60 crore in FY24, while Walya’s revenue fell from about Rs 0.71 crore in FY24. NHC Foods has nevertheless cited the targets’ positive cash flows, although the disclosures do not provide their profitability, cash-flow figures, net worth, assets or liabilities.

Lotmor Brands was incorporated on October 30, 2018, and is registered with ROC Mumbai I. Its business covers manufacturing, trading, marketing, import and export of food and beverage products, besides grocery, staples, dairy, frozen products, fruits and vegetables, juices, nutrition products and nutraceuticals. It has authorised share capital of Rs 10 lakh and paid-up capital of Rs 1 lakh.
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Walya’s Beverages, incorporated on June 24, 2021, is also registered with ROC Mumbai I and operates in manufacturing, trading, wholesale, import and export of food and beverage products. It has authorised capital of Rs 1 crore and paid-up capital of about Rs 76 lakh.

The consideration may be settled in cash or through the issue of NHC Foods shares at Rs 6.5 per share or at a price determined after six months from the disclosure date in accordance with SEBI regulations. Shareholder approval will be required only if the consideration is settled other than entirely in cash.

The specified Rs 6.5 per-share alternative is more than three times NHC Foods’ market price of Rs 2.01. As of 3.54 pm on September 16, 2026, the stock was trading at Rs 2.01, up 4.69 per cent from its previous close of Rs 1.92. Since the number of shares that could be issued has not been disclosed, the potential dilution from a share-based transaction cannot yet be assessed.

The shares were about 25.8 per cent below their 52-week high of Rs 2.71, though they had gained 60 per cent over the preceding year compared with a 2.94 per cent decline in the BSE 500 over the same period.

Separately, the board appointed Suryakant Dhondu Walavalkar, Founder and Managing Director of Lotmor Brands, as an Additional Director and Executive Director of NHC Foods with effect from September 16, 2026. His appointment is valid until the ensuing general meeting and remains subject to shareholder approval. NHC Foods said neither proposed acquisition is a related-party transaction and that no government or regulatory approvals are required.

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