LT Foods surges nearly 11% after pact with Future Consumer

NEW DELHI: The share price of LT Foods rallied as much as 10.95 per cent in early trade on Wednesday after Kishore Biyani-led Future Consumer on Tuesday announced plans to enter a pact with LT Foods and Genoa Rice Mills for sourcing, marketing and distribution of rice.

Future Consumer and LT Foods each will hold 50 per cent of the paid-up share capital in Genoa Rice Mills.

In a BSE filing, Future Consumer said, “The company entered a joint venture agreement on December 6, 2016 with LT Foods and Genoa Rice Mills for undertaking the business of manufacturing, marketing, sale, sourcing and distribution of Sona Masoori/regional South Indian rice.”

On March 8, Future Consumer in principle approved entering a JV arrangement with LT Foods, a company in the rice sector, for possible opportunities to manufacture, market and distribute rice and other products.

Shares of LT Foods were trading 5.11 per cent higher at Rs 280 around 10.23 am. The scrip opened at Rs 275 and touched a high and low of Rs 296 and Rs 275, respectively, in trade so far.

The benchmark BSE Sensex was trading 31.40 points, or 0.12 per cent, higher at 26,424. Future Consumer was trading 1.20 per cent up at Rs 21.10 in the first hour of trade.