1:10 Stock Split, 2:1 Bonus Issue Rewarded: Below Rs 15, FMCG Seeks Fundraising Nod On Feb 21; Gains 442%

Sarveshwar Foods, the first private sector NSE and BSE-listed food company in Jammu & Kashmir, is in focus this week. The reason is that the company's board of directors will meet on February 21 to discuss the fundraising plan. Sarveshwar has been expanding its foot print to strengthen its portfolio and financial books. In February alone the company bagged massive new orders and acquisitions. Recently, the company rewarded its investors with stock split in the ratio of 1:10 and a bonus issue in the ratio of 2:1.

Trading below Rs 15, Sarveshwar froze at a near 52-week high of Rs 11.22 apiece on February 19 with a market cap of Rs 1,098.23 crore. This led to a rise of 442.03% from its 52-week low of Rs 2.07 apiece.

The stock overall hit a 5% upper circuit on Monday.

The latest bullish trend comes after the company announced that its board of directors meeting is scheduled to be held on Wednesday, February 21, 2024.

On February 21, the board will consider the company's long-term business growth plans, the proposal for raising funds by way of inter-alia, issue of equity shares or any other equity-linked instruments or securities including convertible preference shares/ fully or partly convertible debentures or by way of a composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares, or any other eligible securities through inter alia, a private placement (including one or more qualified institutions placements) or through any other permissible mode under applicable laws and/ or a combination thereof, as may be considered appropriate, subject to applicable members/statutory/regulatory/other approvals.

Also, the board will consider increasing the Authorized Share Capital of the Company and consequent amendments in the Memorandum and Articles of Association of the Company, if any.

A few months ago, Sarveshwar shares turned ex-bonus and ex-split on September 15, 2023.

The 1:10 stock split meant that the company's 1 existing share was split into ten shares from September 15, 2023, onward. The 2:1 bonus issue means that the eligible shareholders received 2 bonus shares as a reward against their existing 1 equity share.

Last week, the company announced a 100% acquisition of Ordinary shares and business of Green Point which is engaged in Wholesale Business of General Line (Wide Range) of Groceries (E.G. Cereals, Sugar, Edible Oils, Sauces And Dairy Products), Agricultural RawMaterials And Live Animals, Logs, Sawn Timber, Plywood And Related Products.

The Green Point acquisition is expected to be completed on or before March 20, 2024. The acquisition is of strategic nature and it will provide an International presence and attract investors and strategic partners to bring relevant experience for the growth and expansion of Business.

In the early days of February 2024, the company also announced that it has been designated for distribution of rice under 'Bharat'brand-an initiative taken by Government of India for in Union Territory of Jammu & Kashmir. 'Bharat'brand is a central government strategic initiative to sell high-quality pulses, rice and other essential commodities directly to general public at subsidised price. 'Bharat' brand is an ambitious scheme whereby Government of India is aiming to stabilise prices, curb food inflation, and augment domestic availability, of quality food items across India.

SFL is engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Our operations are based out of the Jammu Region in the State of Jammu and Kashmir. SFL has sustainable and eco+ve legacy of serving healthy and tasty rice for more than 130 years and in last couple of decades proliferated its heritage to other premium categories of FMCG and Organic products.

SFL also has BRC (biggest global standard for food safety), Kosher, NPPO USA & CHINA along with NOP -USDA Organic certifications for its products.

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