Spice Lounge sizzles 5 percent, chases lifestyle fame
Shares of Spice Lounge Food Works climbed 5 percent on Monday and reached the upper trading limit as the hospitality company extended a rally that began more than five sessions earlier. The surge followed an announcement that the firm would take complete control of Rightfest Hospitality LLP, marking an expansion beyond restaurant operations into entertainment venues and lifestyle experiences.
The transaction allows the company to tap into demand from wealthy millennials and travelers in major cities and vacation spots through live music events and upscale locations. Chairman Mohan Babu Karjela described the deal as a major step toward building a multi-format hospitality enterprise that delivers experiences resonating with aspirational consumers. The board has also authorized Karjela to evaluate purchasing a majority position in Blackstone Management LLC and to negotiate investment terms with advisers.
The stock opened at 57.73 rupees per share on the Bombay Stock Exchange before dipping to 57 rupees during the session. The hospitality company has jumped nearly 30 percent over the past week and 1,085 percent across the past year. Spice Lounge Food Works provides information technology services and business process outsourcing in India and internationally.
