Shares of a small-cap multibagger stock appreciated to the tune of 10 percent to reach an all-time high of ₹ 114.05 apiece on the National Stock Exchange (NSE) after the company announced a bonus issue and a stock split.
Sarveshwar Foods informed the bourses that it has announced a 1:10 stock split. Therefore, one share of ₹ 10 each will be divided into ten equity shares having a face value of ₹1 each, subject to the approval of the shareholders in the ensuing extra-ordinary general meeting, and other regulatory approvals.
Moreover, it has also announced a 2:1 bonus issue. Therefore, eligible shareholders will receive two bonus equity shares for every share that they hold in the company
The record date for the above corporate actions is yet to be determined, and it shall be informed in due course. The company board also approved the alteration of the capital clause of the memorandum of association of the company consequent to aforesaid corporate actions, subject to approval from shareholders of the company.
Shares of Sarveshwar Foods rallied 106 percent in the past year to deliver multibagger returns. In the past three years, its share price rallied by a massive 900 percent. Thus, if an investor had invested ₹ 1 lakh in the company’s shares one year ago, the value of their holdings would have been ₹ 2.06 lakhs and if the same amount was invested three years ago, the value of their holdings would have been ₹ 10 lakh today!
Sarveshwar Foods is engaged in the manufacturing, trading and export of Basmati rice, which is a long grain rice with a fine texture. It is a small-cap company with a market capitalization of ₹ 317 crores.
The company’s promoters hold a 55.74 percent stake in it, followed by retail investors with 41.89 percent and foreign institutions with 2.37 percent.
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
