Talwalkars Better Value Fitness spurted 11.53% to Rs 177.95 at 9:37 IST on BSE on report that UK-based health and fitness group David Llyod is eyeing 20% stake in the Indian company.
Meanwhile, the BSE Sensex was up 39.21 points, or 0.18%, to 22,134.51.
On BSE, so far 1.65 lakh shares were traded in the counter, compared with an average volume of 21,970 shares in the past one quarter.
The stock hit a high of Rs 182 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 165 so far during the day. The stock hit a 52-week low of Rs 110 on 30 August 2013.
The stock had outperformed the market over the past one month till 26 March 2014, rising 7.30% compared with the Sensex's 5.28% rise. The scrip had, however, underperformed the market in past one quarter, falling 4.40% as against Sensex's 4.84% rise.
The small-cap company has an equity capital of Rs 26.18 crore. Face value per share is Rs 10.
According to the report, David Lloyd has begun talks with the management of Talwalkars Better Value Fitness to acquire around 20% stake in the company. With this equity deal, both companies are looking to expand their existing partnership of providing consultancy services, the report added.
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.
David Lloyd is one of the biggest racquets, health and fitness operators in Europe with around 80 clubs in the UK and a further 10 sites across Europe. It has over 4.50 lakh members and employs some 6,000 people, including an expert health and fitness team of over 1,800 and over 450 tennis professionals.
The report suggested that the Indian fitness and slimming industry, still at a nascent stage, is currently pegged at $780 million and is slated to grow at a compounded annual rate of 25% to reach $2.4 billion by 2015.
On a consolidated basis, Talwalkars Better Value Fitness' net profit rose 20.1% to Rs 3.53 crore on 29.1% increase in net sales to Rs 36.62 crore in Q3 December 2013 over Q3 December 2012.
Talwalkars Better Value Fitness owns one of the largest and oldest fitness chains in India. The company's health clubs offer a suite of standardised services like gym, spa, aerobics and health counselling under the brand name 'Talwalkars'.
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