Shares of Lotus Chocolate Co. rose by 5% at about ₹122.9 per share in the Bombay Stock Exchange in Friday’s market, only a day after Reliance Industries agreed to buy a majority stake in the company for $8.94 million.

Reliance Consumer Products Limited

Reliance Consumer Products Limited (RCPL) the fast-moving arm of Reliance Retail will acquire 51% stake in the Lotus Chocolate Co. Additionally, RCPL will also make an open offer to buy up to 26% stake from the public shareholders of the Lotus Chocolate Co.

According to the reports RCPL will acquire 6.5 lakh equity shares of the company at a price of Rs.133 per share. Additional to that RCPL will also subscribe to over 5 crore non-cumulative redeemable preference shares with a face value of Rs 10 each at par.

“RCPL will acquire 65.48 lakh equity shares of LOTUS representing 51% of the paid-up equity share capital of LOTUS from the current promoter and promoter group.. at a price per share of ₹113.00 aggregating to ₹74 crore. RCPL and certain promoter group entities of LOTUS to subscribe to 5.07 crore non-cumulative redeemable preference shares of face value of ₹10 each,” said a joint statement.

It was also said that the capital infused by RCPL will enable the growth of the Lotus Chocolate Co. and its expansion in the area of comprehensive confectionery, chocolate derivatives and related product companies.