LT Foods acquires remaining 49% stake in Kameda JV for ₹1.12 crore
- LT Foods acquires remaining 49% stake in Kameda JV for ₹1.12 crore
- Deal makes Kameda LT Foods a wholly owned subsidiary by December 2026
- Target entity reported turnover of ₹1,403 lakhs as on March 31, 2026
- Transaction subject to FEMA regulatory approvals
*this image is generated using AI for illustrative purposes only.
LT Foods has agreed to acquire the remaining 49% equity stake in its joint venture, Kameda LT Foods (India) Private Limited, from partner Kameda Seika Co., Ltd. The deal values the minority interest at ₹1.12 crore and will convert the snack manufacturer into a wholly owned subsidiary.
The Share Purchase Agreement was executed on September 16, 2026. Upon completion, scheduled by December 31, 2026, LT Foods’ shareholding in the entity will increase from 51% to 100%. The transaction is structured as a cash consideration deal and is subject to customary regulatory filings under the Foreign Exchange Management Act, 1999.
Transaction Details
The acquisition involves 2,80,26,726 equity shares of Kameda LT Foods (India) Private Limited. The target entity, incorporated on March 14, 2017, operates primarily in India, manufacturing and marketing rice-based snack products such as Kaki Kari, KRISPY HOPU, and Okaki.
| Particulars | Details |
|---|---|
| Target Entity | Kameda LT Foods (India) Private Limited |
| Stake Acquired | 49% (2,80,26,726 shares) |
| Consideration | ₹1.12 crore (Cash) |
| Completion Date | December 31, 2026 |
| Regulatory Status | Subject to FEMA approvals |
Financial Context
Kameda LT Foods reported turnover of ₹1,403 lakhs as on March 31, 2026, a slight decline from ₹1,432 lakhs in the preceding year. This follows a significant jump from ₹736 lakhs recorded as on March 31, 2024. The transaction does not constitute a related party transaction, with no promoter group interest beyond their holding in LT Foods.
What the Numbers Show
The acquisition price of ₹1.12 crore for a 49% stake implies a total enterprise value of approximately ₹2.29 crore for the joint venture. This valuation stands at roughly 1.6 times the entity’s most recent reported turnover of ₹1,403 lakhs, suggesting a low multiple relative to sales volume for the snack business unit.
Historical Stock Returns for LT Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.78% | -8.24% | -0.49% | +8.44% | -9.17% | +504.12% |
How will consolidating Kameda LT Foods into a wholly owned subsidiary impact LT Foods' consolidated EBITDA margins given the current low valuation multiple?
What specific operational synergies or cost-saving measures does LT Foods plan to implement in the snack segment following full ownership?
Could the recent turnover decline from ₹1,432 lakhs to ₹1,403 lakhs signal broader headwinds in the rice-based snack market that might affect future growth projections?
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