2:1 Bonus Issue, 1:10 Stock Split Get Board’s Nod: Small Cap Stock Hits Upper Circuit

Board of small cap stock operating in agro-processing sector, Sarveshwar Foods Ltd today approved bonus issue in the proportion of 2:1 and sub-division/split of equity shares in the ratio of 1:10. Soon after the announcement, Sarveshwar Foods shares hit upper circuit and traded new 52-week high. Sarveshwar Foods stock rallied 8.41% intraday. The company has not yet fixed the record date for stock split and bonus issue. Last trading price of Sarveshwar Foods is Rs 112.10 per share. Check details below:

Sarveshwar Foods Approves Bonus Share: According to the exchange filing of Sarveshwar Foods Ltd dated August 2, 2023, "The proposal of issuance of Bonus equity shares to the securityholders of the Company in the ration 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) held by the Eligible securityholders of the Company as on the record date, 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 bonus issue shall be intimated to the stock exchanges in due course."

Sarveshwar Foods Gives Nod To Stock Split: The company's BSE filing said, "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."

Sarveshwar Foods Stock Outlook & Return: Last trading price of Sarveshwar Foods share is Rs 112.10 apiece on BSE. The stock's 52-week high price is Rs 113.80 per share and 52-week low price is Rs 62.60 apiece, respectively. The company has a market capitalisation of Rs 342.99 crore. In last 1-week, Sarveshwar Foods shares soared 15%, rallied 60% in last 1-month, and offered return of 26% YTD (year-to-date).

Sarveshwar Foods Financial Outlook: The company for the quarter ended March 31, 2023 declared its consolidated total income at Rs 130.66 crore, down 30.42% as against its last quarter total income of Rs 187.79 crore. It announced its recent quarter net profit after tax at Rs 1.87 crore.

Disclaimer: The stock highlights the bonus issue, stock split, 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.