Heritage Foods and the Chandrababu Naidu connection

Shares of Heritage Foods Ltd. are locked in an upper circuit of 20% on Wednesday. The stock is up for the third day in a row, during which it has gained over 35%.

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The stock has now risen in eight out of the last nine trading sessions, during which it has risen 54%. The stock is now at a record high.

Shares have extended gains after it became clear that Telugu Desam Party (TDP) leader Chandrababu Naidu will become Chief Minister of Andhra Pradesh after the recently concluded assembly elections.

Heritage Foods is surging on this news as the company’s promoters, Bhuvaneswari Nara and Nara Lokesh are the wife and son of the Chief Minister-elect respectively.

As of the March quarter end, Bhuvaneswari Nara had a 24.37% stake, while son Nara Lokesh had a 10.82% stake in the company. Promoters cumulatively held a 41.3% stake in the company.

Among public shareholders, India’s mutual funds held a 11.55% stake in the company, prominent among them being Kotak Small Cap Fund (4.77%) and DSP Small cap Fund (5.24%).

Nirvana Holdings Pvt. Ltd. also has an 11.76% stake in the company.

Shares of Heritage Foods had risen 21% in May. The stock had risen 66% in 2023, after having declined 12% in 2022.

Shares of Heritage Foods are up 20% at ₹546.5. The stock is up 80% so far this year.