6,800 Per Cent Multibagger Returns: This Rice Export Company Raises Rs 136.5 Crore Through Convertible Warrants for Business Expansion; Details Inside

The stock gave multibagger returns of 1,225 per cent in 5 years and a whopping 6,800 per cent over a decade.

GRM Overseas Ltd, a leading Indian basmati rice exporter and food FMCG company, has secured funding of Rs 136.5 crore ($16.6 million) through the issuance of convertible warrants. This capital infusion will be deployed strategically across various aspects of the company's operations.

Specifically, Rs 136.5 crore will be raised by issuing 91,00,000 share warrants for Rs 150 each, which includes a premium of Rs 148 per warrant. This preferential allotment will involve 33 investors, including both promoters and non-promoters. Promoters (Atul Garg was allocated 5,50,000 shares, Mamta Garg was allocated 5,50,000 shares and Hukam Chand Garg was allocated 1,08,000 shares) were allocated 12,08,000 shares while non-promoters were allocated 78,92,000 shares where in few name appeared were Nikhil Vora HUF, Forbes EMF, Coeus Global Opportunities Fund, Singularity Equity Fund I, etc.

The funds will be utilized for a three-pronged approach:

• Enhancing product range and brand expansion: A portion of the capital will be directed towards expanding the "10X" brand in India, solidifying its position as a comprehensive food FMCG player. This will likely involve the introduction of new products and potential acquisitions of complementary brands in the New-age Direct-to-Consumer (D2C) space.
• Boosting operational capabilities: The funding will also be used to improve GRM Overseas' operational efficiency. This could encompass investments in infrastructure, technology, or streamlining internal processes to achieve better performance.
• Exploring inorganic growth opportunities: The company aims to leverage the funds to pursue strategic mergers and acquisitions that align with its growth objectives. This might involve acquiring companies in the food FMCG sector to broaden its product portfolio or market reach.

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GRM Overseas Ltd, a leading Indian company in the basmati rice industry, mills, processes, and markets both branded (like their 10X brand) and non-branded basmati rice for both domestic consumption and international export. Their product range goes beyond just basmati rice, also including atta flour (Shakti Chakki Fresh) and ready-to-cook biryani kits in various regional styles like Moradabadi, Hyderabadi, and Lucknowi.

Earlier, On June 10, 2024, the promoter of the company bought 73,000 shares or 0.12 per cent stake of the company via open market worth approx. Rs 11 crore. 

Standalone Results

The total income increased by 3.8 per cent to Rs 376.92 crore in Q4FY24 and net profit increased by 77.2 per cent to Rs 15.68 crore in Q4FY24 compared to Q4FY23. In its annual results, a total income of Rs 1,185.83 crore and a net profit of Rs 51.54 crore in FY24 compared to a total income of Rs 1,262.46 crore and a net profit of Rs 53.56 crore in FY23.

Consolidated Results

The company reported a total income of Rs 417.61 crore in Q4FY24 compared to a total income of Rs 438.10 crore in Q4FY23. The net profit increased by 88 per cent to Rs 21.17 crore in Q4FY24 compared to a net profit of Rs 11.28 crore in Q4FY23. In its annual results, a total income of Rs 1,312.44 crore and a net profit of Rs 60.72 crore in FY24 compared to a total income of Rs 1,392.22 crore and a net profit of Rs 62.86 crore in FY23.

Today, shares of GRM Overseas Ltd gained 3.13 per cent to Rs 194.50 per share from its previous closing of Rs 188.50. The stock’s 52-week high is Rs 231.35 while its 52-week low is Rs 114.15. The company has a market cap of over Rs 1,100 crore.

As of March 2024, the company's promoters increased their stake to 72.16 per cent and FIIs increased their stake to 0.26 per cent compared to 71.72 per cent and 0.07 per cent in March 2023. The shares of the company have an ROE of 21 per cent and an ROCE of 15 per cent. The stock gave multibagger returns of 1,225 per cent in 5 years and a whopping 6,800 per cent over a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.