Small-cap stock Krishival Foods close to record high, jumps over 4% intraday after acquisition update | Stock Market News
Source: Live Mint
Small-cap stock Krishival Foods jumped over 4 per cent in intraday trade on NSE on Tuesday, September 17, a day after the company announced it acquired a 52.94 per cent stake in Melt ‘N’ Mellow Foods Private Limited. Krishival Foods share price opened at ₹312 against its previous close of ₹302.45 and rose 4.2 per cent to the level of ₹315. If the stock ends in the green, it will be its third consecutive session of gains.
“This is to inform you that Krishival Foods Limited, in its meeting held on Monday, September 16, 2024, has considered and approved to make a strategic investment in Melt ‘N’ Mellow Foods Private Limited by subscribing 52.94 per cent of the total paid-up share capital in the form of equity shares of Melt ‘N’ Mellow Foods Private Limited,” said Krishival Foods.
Melt ‘N’ Mellow Foods manufactures and sells ice cream, milk, and bakery products under the brands Melt ‘N’ Mellow and ‘Hamma’.
Krishival Foods will acquire 52.94 per cent of the total paid-up share capital of Melt ‘N’ Mellow by September 30 for ₹9 crore, and make it its subsidiary.
Krishival Foods said this acquisition will diversify the business from nuts, and dry fruits to ice cream, milk products, and bakery
products. Sales and distribution channels can be leveraged for scaling of all segments as both the firms deal in food segments.
Krishival Foods share price trend
The small-cap stock has given a tepid return of about 19 per cent over the last year, according to investing.in. It hit its 52-week high of ₹317.45 on September 13 this year and a 52-week low of ₹213 on July 25 last year.
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