Sarveshwar Foods To Consider Stock Split, Bonus Shares, Scrip Jump 10%

Sarveshwar Foods shares on the roll today as the company has informed exchanges about the stock split and bonus issuance plans. The stock zoomed more than 11 per cent during Friday's session to hit Rs 88.07 on BSE.

According to an exchange filing by the company, the board is slated to meet on August 2 to consider the proposal of sub-division of its equity shares and also bonus shares for its investors.

"The meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, August 02, 2023, inter-alia, to consider and approve the proposal for sub-division/split of Equity Shares of the Company having a face value of Rs. 10/- each in such manner as the Board may determine," the company said in a filing.

"The proposal of issuance of Bonus shares to the security holders of the Company," the filing added.

The board will also consider increasing the authorised share capital of the company and consequent alteration of Memorandum of Association.

In the last 5 trading sessions, the stock has jumped 30 per cent. The company has a market cap of Rs 267 crore, according to BSE data. The stock made a 52-week-high of Rs 95.95 (09/01/2023) and a 52-week-low of Rs 62.60 (28/03/2023), indicating that at the current market price of Rs 88.07 apiece the scrip is trading 40.68% above the 1 year low and 8.21% below the 1 year high. The micro cap company recorded a promoter shareholding of 55.74% and public stake of 44.26% in Q1FY24.

Incorporated in 2004, Sarveshwar Foods is mainly a rice company. It is engaged in manufacturing, trading and export basmati and non-basmati rice.