After 1:10 Stock Split, 2:1 Bonus Issue FMCG Stock Sarveshwar Foods Okays QIP of Rs 100 Cr

The subject matter for this week is Sarveshwar Foods, the first food firm in Jammu and Kashmir listed on both the NSE and the BSE in the FMCG sector. The company recently provided its investors with a 2:1 bonus issue and a 1:10 stock split as a way of wealth creation. Following the announcement of two significant corporate actions, Sarveshwar Foods' shares became ex-bonus and ex-split on September 15, 2023. After the announcement of 2 major corporate actions, Sarveshwar Foods has announced that its Board of Directors have approved the raising of funds by a preferential issue of Rs. 9,894 Lakhs on Thursday.

The Board of Directors of the company in their meeting held on Thursday, February 22, 2024, considered and approved fundraising by way of creating, issuing and allotting up to 10.20 Cr, carrying a right exercisable by the warrant holder to subscribe to one equity share having face value of Re.1/- per warrant, to persons belonging to "Non-Promoter, Public Category", on preferential basis at an issue price of Rs. 9.70/- per warrant payable in cash for aggregating amount of up to Rs. 9,894 lakhs.

The Board also approved fundraising "by issuance and allotment of equity shares for another aggregate amount not exceeding Rs. 100 Crore (Rupees One Hundred Crore), by way of QIP's, ADR, GDR, FCCB or any other method or combination thereof including series of Right Issue(s), each tranche not exceeding Rs. 50 Crore (Rupees Fifty Crores Only), on such terms (to be decided by the Board or a duly constituted committee of the Board at a later date) as are in accordance with the Companies Act, 2013 and the rules made thereunder and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable regulations, guidelines etc. as amended up to date," said Sarveshwar Foods in a regulatory filing on Thursday.

The Board also approved to increase the authorised share capital of the company from Rs. 100 Cr consisting of 100 Cr equity shares of Re. 1/- each to Rs. 120 Cr consisting of 120 Cr equity shares of Re. 1/- each.
On Friday, the shares of Sarveshwar Foods opened higher at Rs 13.45 apiece on the NSE and were trading 4.65% higher at Rs 13.50 during the morning deals. The scrip reached a 52-week-high of Rs 13.50 on (23-Feb-2024) and a 52-week-low of Rs 2.08 on (28-Mar-2023).

The firm is dedicated to offering the world's finest Basmati rice to foodies. It complies with ISO 22000:2005 standards. Sarveshwar Foods is certified NOP-USDA Organic, BRC, Kosher, HACCP, and GMP, and it is also registered with the US Food and Drug Administration (USFDA).