Multibagger Stock Hit Upper Circuit As Board Allots 65,25,44,000 Bonus Shares

In Monday's closing session, Sarveshwar Foods, a microcap FMCG company, had a market cap of Rs 479.62 Cr. The stock rose by 1.03% above the previous closing of Rs 4.85 to trade yesterday at Rs 4.90 per share on the upper circuit. At their meeting on Monday, September 18, 2023, the board of directors of Sarveshwar Foods Limited discussed and approved the 2:1 allocation of 65,25,44,000 bonus equity shares worth Rs. 1 each to the company's existing shareholders as of the record date, or September 15, 2023.

"In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at their meeting held on today i.e. Monday, September 18, 2023, inter-alia, considered and approved the following business items: 1. allotted 65,25,44,000 Equity shares of Rs. 1/- each as fully paid Bonus Shares to the existing shareholders of the Company as on Record date i.e. September 15, 2023 in the ratio of 2:1 i.e. 2 (Two) Equity Shares for every 1 (One) Equity Shares having a face value of Re. 1/- each held. Post the above allotment, the paid-up Equity Share capital of the Company would stand at Rs. 97,88,16,000/- divided into 97,88,16,000 equity shares of Re. 1/- each," said Sarveshwar Foods in a stock exchange filing.

The modification in the record date for the 1:10 stock split and 2:1 bonus shares was disclosed to stock exchanges recently by Sarveshwar Foods Ltd. The record date, which the company had previously set as September 5, 2023, was amended to September 15, 2023. The company's net profit for the quarter ended in June 2023 climbed 3.79 percent to Rs 2.89 crore, according to a regulatory filing. In the first quarter of the prior fiscal year, the firm reported a net profit of Rs 2.79 crore. The company's net profit jumped by more than 60% on a QoQ basis as compared to the net profit of Rs 1.80 crore in Q4FY23. According to its regulatory filing, the company's total revenue for Q1FY24 was Rs 189.23 crore, down from Rs 199.71 crore in Q1FY23. The net income jumped sequentially by almost 46%, from Rs 130.6 crore in Q4FY23 to Rs 189.23 crore in Q1FY24.

On Monday, the shares of Sarveshwar Foods closed on the BSE at Rs 4.90 apiece up by 1.03% over the previous close of Rs 4.85. The stock made a 52-week-high of Rs 5.24 on (13/09/2023) and a 52-week-low of Rs 2.07 on (28/03/2023), indicating that at the current market price, the stock is trading 6.48% below the 1-year high and 136.71% above the 1 year low. During Q2FY24, the company recorded promoters shareholding of 54.91%, FIIs stake of 3.75%, and public stake of 41.34%.