2:1 Bonus Issue, 1:10 Stock Split: Multibagger Penny Stock To Consider Fund Raising

Small cap company from the FMCG sector, Sarveshwar Foods Ltd shares hit fresh 52-week high and touched 5% upper circuit in trade today. The Board of Directors of Sarveshwar Foods are scheduled to hold a meeting on February 21 to consider the proposal of fund raising and increase the authorized share capital of the company. Last trading price of Sarveshwar Foods shares on BSE is Rs 11.22 apiece with intraday gain of 4.96%. Sarveshwar Foods stock offered shareholders return of 127% in last 3-months and 26% in last 2-weeks. Check details below:

Sarveshwar Foods To Consider Fund-Raising: As per the regulatory filing of the company dated February 17, 2024, "meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, February 21, 2024, inter-alia, to transact the following businesses:

1. to evaluate, in terms of the company's long-term business growth plans, the proposal for raising of 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 combination thereof, as may be considered appropriate, subject to applicable members/statutory/regulatory/other approvals."

2. to increase the Authorized Share Capital of the Company and consequent amendments in Memorandum and Articles of Association of the Company, if any;"

Sarveshwar Foods Shares Performance & Return: The 52-week high price of Sarveshwar Foods shares on BSE is Rs 11.22 apiece and 52-week low price is Rs 2.07 apiece, respectively. The company has a market capitalisation of Rs 1098.23 crore. Sarveshwar Foods shares rallied 91% year-to-date (YTD), soared 155% in last 6-months, and offered return of 297% in last 1-year.

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 after GI tag 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.