2:1 Bonus Issue, 1:10 Stock Split: FMCG Penny Stock Hits 2nd 52-Week High, Gains 155% In 2024

Penny stock from the FMCG sector, Sarveshwar Foods Ltd shares have been witnessing sharp rally in the last one month as the stock rallied 109% in this tenure. Earlier on February 22, 2024 Sarveshwar Foods considered and approved fundraising to boost the long-term financial resources. Current market price of Sarveshwar Foods shares on BSE is Rs 14.99 apiece with intraday gain of 4.97%. Sarveshwar Foods shares hit 2nd consecutive upper circuit in trade today. Check details below:

Sarveshwar Foods Approves Fundraising: Earlier on Feb 22, the company issued a BSE filing stating, "considered and approved fundraising to boost the long-term financial resources by issuing and allotting up to 10,20,00,000 (Ten Crores and Twenty Lakhs Only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share having face value of Re.1/- per Warrant, to persons belonging to "Non-Promoter, Public Category", as detailed in Annexure-I, on preferential basis at an issue price of Rs. 9.70/- (Nine Rupees and Seventy Paisa Only) per Warrant, which is higher than the floor price determined in accordance with the provision of Chapter V of SEBI ICDR Regulations, payable in cash for aggregating amount of up to Rs. 9,894 Lakhs, subject to approval of shareholders and other regulatory authorities, as may be applicable."

Sarveshwar Foods Shares Performance & Return: The 52-week high price of Sarveshwar Foods shares on BSE is Rs 14.99 apiece and 52-week low price is Rs 2.07 apiece, respectively. The company has a market capitalisation of Rs 1,467.25 crore. Sarveshwar Foods stock rose 155% year-to-date, surged 217% in last 3-months, and gained a massive 435% in last 1-year only.

Sarveshwar Foods Schedules EGM: As per the regulatory filing of the company dated Feb 23, "Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose the Notice of the Extra Ordinary General Meeting of our company which is scheduled to be held on Saturday, the 16th Day of March, 2024."

Sarveshwar Foods Q3 Financials: The company for the quarter ended December 31, 2023 declared a surge of 186.05% in its net profit to Rs 4.92 crore as compared to Rs 1.72 crore net profit in the corresponding quarter of last year. The company announced a jump of 24.72% in its sales to Rs 229.38 crore for the December 2023 quarter as compared to Rs 183.91 crore declared in the similar quarter of last year.

The company earlier this year on January 8, 2024 declared that it has been granted 1 "Geographical Indication"( GI) tag in Jammu & Kashmir for Basmati Rice by APEDA ( Ministry of Commerce & Industry, Govt. of India). With this, Sarveshwar Foods limited became the 1st and only company based in Jammu and Kashmir region which has the GI tag for Basmati rice for export purposes.

Sarveshwar Foods Bonus Issue In 2023: The board of directors of Sarveshwar Foods in 2023 fixed September 15 as record date for 2:1 bonus shares. As per its BSE filing saying, "Board of Directors has revised Record Date to Friday, September 15, 2023 for the purpose of ascertaining the eligibility of securityholders entitled for issuance of Bonus Equity Shares of the Company 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/- (considering the post sub-division/split of face value of equity shares)."

Sarveshwar Foods Stock Split In 2023: In 2023, it also announced sub-division/split of company's 1 (one) Equity Shares of the Company having a face value of Rs. 10/- each into 10 (Ten) Equity shares of the company having face value of Re. 1 each, subject to the approval of shareholders to be obtained in the ensuing extra-ordinary general meeting and such other approvals as may be required. In this regard, the record date for such division/ split shall be intimated to the stock exchanges in due course." The record date for stock split was September 15.

Sarveshwar Foods About: The Company is engaged in the business of manufacturing, trading, processing, and marketing ofbranded and un-branded basmati and non-basmati rice in the domestic and international markets.Our operations are based out of the India's Jammu Region. SFL hassustainable 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 belongs to the lands in foothills of Himalayas which is nourished by fertile mineral-rich soil,organic manure and snow melted waters of river Chenab, wherein without using any artificial fertilizers and chemicals, they produce full range of 'ORGANIC' products, being sold with brandname 'NIMBARK'- conceptualized to spread the philosophy of the 'SATVIK' conscious lifestyle.

Disclaimer:

The stock just highlights the rally in share and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for ay losses. Please consult a professional advisor.