Talwalkars rallies 14%, hits 52-week high on stake sale reports

NEW DELHI: Talwalkars Better Value Fitness Ltd rallied as much as 14.07 per cent in trade to hit its fresh 52-week high of Rs 182 on Thursday, on reports that UK's health and fitness group The David Lloyd has begun talks with the management of Talwalkars Better Value Fitness to acquire around 20 per cent stake.

At 09:25 a.m.; Talwalkars was trading 13 per cent higher at Rs 180.75. It has hit a low of Rs 165 and a high of Rs 182 in trade today.

With this equity deal, both companies are looking to expand their existing partnership of providing consultancy services, ET reported quoting two people with direct knowledge of the development.

"The management of David Lloyd is in talks to pick up an equity stake in Talwalkars. This will help both companies to expand their current relationship," said an investment banker with knowledge of the deal.

The BSE-listed Talwalkars Better Value Fitness is 54.78 per cent owned by the promoters, Madhukar Talwalkar and family. The company's current market cap stands at Rs417 crore.

Going by this, the 20 per cent stake would help the company raise more than Rs100 crore. When contacted, Anant Gawande, whole-time director and chief financial officer of the company, declined to comment, saying it's still early days, while a spokesperson for David Lloyd did not respond to an emailed query from ET.

Talwalkars is a Mumbai-based chain of health centres. In 2012, the company announced its partnership with David Lloyd Leisure Group to provide consulting for leisure and sports clubs in high end residential developments, gated community townships and corporate campuses.

The joint venture's key areas of focus are consulting, execution, management and operations of leisure and sports clubs, added the ET report.