Change of fortune within 5 minutes in the multibagger penny stock below Rs 15: FIIs increasing stake and company into expansion of business!

The stock gave multibagger returns of 426 per cent in just 1 year and of a whopping 2,500 per cent in 3 years.

Sarveshwar Foods Limited celebrates its grand opening in New Delhi, marking a major step in its strategic growth plan. This expansion reflects their commitment to excellence as they broaden their reach and strengthen their regional presence. Complementing existing offices, the new location improves operational efficiency and regional connectivity. The strategic move positions them to access valuable resources and a renowned talent pool, furthering their dedication to sustainable growth, innovation, and shareholder value. This expansion signifies their commitment to excellence and enhancing value for all stakeholders.

The company is aiming to raise Rs 9,894 lakhs for its long-term expansion by issuing 10,20,00,000 warrants at Rs 9.70 each to non-promoter investors, convertible into equity shares valued at Rs 1 each, subject to shareholder and regulatory approvals. Furthermore, it intends to secure an additional Rs 100 crore through various means such as QIP, ADRs, GDRs, FCCBs, or other legally permissible methods, potentially in multiple tranches of up to Rs 50 crore each, with specific terms to be determined by the board in compliance with relevant regulations including the Companies Act, 2013, SEBI regulations, and other applicable guidelines.

Key allocations include 4,75,00,000 shares to Eminence Global Fund PCC - Eubilia Capital Partners Fund I, 2,55,00,000 shares to Radiant Global Fund-Class B Participating Shares, and 1,60,00,000 shares to Nova Global Opportunities Fund PCC-Touchstone.  

A multibagger penny stock, priced below Rs 15, experienced a rollercoaster ride within 5 minutes. It initially plunged 5 per cent to hit a low of Rs 12.87 per share, but then reversed course dramatically, surging 5 per cent to the upper circuit and reaching Rs 14.21 per share, a change of fortune.

Established over 130 years ago, Sarveshwar Foods Limited (SFL) is a highly certified producer and distributor of basmati and non-basmati rice, operating from Jammu and Kashmir and serving both domestic and international markets. Beyond rice, they've expanded into organic and premium FMCG categories. Their commitment to quality, sustainability (including the organic "NIMBARK" range), and social responsibility is exemplified by their recent partnership with India's "Bharat" brand to distribute subsidized rice, showcasing their potential to enhance food security through their multi-channel approach.

The company has a market cap of over Rs 1,300 crore with a 3-year CAGR of 200 per cent. According to Quarterly Results, the net sales increased by 24.7 per cent to Rs 229.38 crore and net profit increased by 186.6 per cent to Rs 4.93s crore in Q3FY24 compared to Q3FY23. In its annual results, the net sales increased by 14 per cent to Rs 689 crore and net profit increased by 166.7 per cent to Rs 8 crore in FY23 compared to FY22. The stock gave multibagger returns of 426 per cent in just 1 year and of a whopping 2,500 per cent in 3 years.

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