FIIs bought 8,90,00,000 shares of this multibagger penny stock at Rs 13.50 with 2,600 per cent returns via preferential issue; hit upper circuit & 52-week on February 23

The stock gave multibagger returns of 380 per cent in just 1 year and of a whopping 2,600 per cent in 3 years.

Today, one of the Top Gainers on NSE, shares of Sarveshwar Foods Ltd (SFL) hit a 5 per cent upper circuit to Rs 13.50 per share from its previous closing of Rs 12.90. The stock also made a fresh new 52-week high of Rs 13.50 per share.  

The company plans to raise ₹9,894 lakhs for long-term growth by issuing 10,20,00,000 warrants at ₹9.70 per warrant to non-promoter investors. These warrants are convertible into equity shares with a face value of ₹1 each, subject to shareholder and regulatory approvals.

The company intends to raise an additional ₹100 crore through various methods, including a Qualified Institutional Placement (QIP), American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs), or other legal methods or combinations thereof. This fundraising could involve multiple tranches, each with a maximum size of ₹50 crore, and the specific terms (determined later by the board) will comply with relevant regulations, including the Companies Act, 2013, SEBI regulations, and other updated guidelines.

In the allotment FIIs where Eminence Global Fund PCC - Eubilia Capital Partners Fund I - 4,75,00,000; Radiant Global Fund-Class B Participating Shares - 2,55,00,000; and Nova Global Opportunities Fund PCC-Touchstone - 1,60,00,000.

Sarveshwar Foods Limited (SFL) is an ISO 22000:2018 and USFDA (United States Food and Drug Administration) certified company. SFL also has BRC (the biggest global standard for food safety), Kosher, NPPO USA & CHINA along with NOP -USDA Organic certifications for its products. The company is engaged in the business of manufacturing, trading, processing, and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. Our operations are based out of the Jammu Region in the State of Jammu and Kashmir.

SFL has a sustainable and eco-positive legacy of serving healthy and tasty rice for more than 130 years and in the last couple of decades proliferated its heritage to other premium categories of FMCG and Organic products. SFL belongs to the lands in the foothills of the Himalayas which are nourished by fertile mineral-rich soil, organic manure and snow-melted waters of river Chenab, wherein without using any artificial fertilisers and chemicals, they produce a full range of ‘ORGANIC’ products, being sold with brand name ‘NIMBARK’- conceptualised to spread the philosophy of the ‘SATVIK’ conscious lifestyle.

India's "Bharat" brand, offering subsidized staples like pulses, atta, and now rice at Rs 29/kg, has chosen Sarveshwar Foods for distribution in Jammu & Kashmir. This partnership not only ensures wider access to affordable food but also bolsters the "Bharat" brand's mission, leveraging Sarveshwar's 130-year experience to tackle food inflation and empower citizens. By expanding to multiple channels like NAFED, NCCF, and e-commerce, the initiative holds immense potential to improve food security and empower Indian citizens.

The company has a market cap of over Rs 1,300 crore with a 3-year CAGR of 150 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 380 per cent in just 1 year and of a whopping 2,600 per cent in 3 years.

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

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