Shares of this multibagger stock under the ‘small-cap’ category jumped nearly 4 percent in Friday’s trading session after the company’s Board approved fundraising via equity route. In the past month, the company’s gained a whopping 93 percent for its holders.
With a market capitalization of Rs 1,310.63 crores, the stocks of Sarveshwar Foods Limited started their trading session on Friday at Rs 13.20 and currently trade at Rs 13.40, gaining approximately 4 percent as compared to the previous closing levels of Rs 12.96 apiece.
Such bullish share price movements were witnessed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the Board of Directors (BoD) of the company, in a recent meeting held on 22nd February 2024, considered and approved fundraising via equity route.
Firstly, the Board approved the preferential issue of Rs 98.94 crores by way of creating, issuing, and allotting up to 10.20 crore fully convertible warrants at an issue price of Rs. 9.70 per warrant.
In addition, the Board approved the raising of funds by issuance and allotment of equity shares via Qualified Institutional Placement (QIP) or any other Issue of an amount not exceeding Rs 100 crores.
During the recent financial quarters, the company’s basic business indicators, viz, operating revenues as well as after-tax profits, showed consistent movements with the former increasing from Rs 205 crores during Q2FY24 to Rs 229 crores during Q3FY24 and the latter, keeping the timeframe the same, stayed uniform at levels of Rs 4 crores.
Year-to-date, the company’s stock has delivered multibagger returns of around 130 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock at the inception of 2024, it would have converted to Rs 2.30 lakhs.
As per the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold a 54.91 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing their stake, currently hold a 2.59 percent stake in the company.
Sarveshwar Foods Limited is engaged in the business of processing as well as trading ‘basmati rice’. The company’s product portfolio includes a complete range of traditional Indian basmati rice, pusa basmati rice, sharbati rice, and many others.
Written by Amit Madnani
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