9,650 per cent returns: This multibagger small-cap company sells more than 3 per cent of its stake to venture capital fund, Sauce.vc – Check details inside!

The stock gave multibagger returns of 530 per cent in 3 years, 1,140 per cent in 5 years and a whopping 9,650 per cent over a decade.

GRM Overseas Ltd has sold more than a 3 per cent stake in GRM Foodkraft Pvt Ltd. (Foodkraft), a subsidiary of GRM Overseas Ltd. focused on domestic India-based foods business, to Sauce.vc (Sauce), a consumer-focused venture capital fund, for an undisclosed amount. Sauce has also acquired an additional 1 per cent stake from other shareholders.

The company sells a variety of BASMATI RICE under the Brand 10X Zarda King XXL, WHEAT FLOUR (Atta), Besan, Daliya, Suji, Poha etc. under its 10X Shakti Brand. 10X Ready-to-cook product kits such as Hyderabadi Biryani and One Pot Moradabadi Biryani, are already been well accepted in markets. GRM Foodkraft has a presence in online and offline retail as well as the D2C segment. It has over 52 Distribution Centres (DCs), serving more than 1,60,000 Kirana stores.

Commenting on raising the fund, Atul Garg, MD, GRM Overseas said, “We are delighted to welcome Sauce.vc as a strategic investor. We look forward to deriving substantial advantages from the wealth of experience and a demonstrable history of creating new-age brands by the Sauce team. Our goal is to evolve our brands into distinguished names in their respective product categories.

We also intend to work with the Sauce team to identify emerging areas for launching new brands in packaged foods and to explore deepening our presence in digital channels including e-grocers, quick commerce and ecommerce. Sauce’s investment aligns with our commitment to rapidly scale and diversify our product portfolio."

GRM Overseas Ltd is primarily engaged in the business of milling, processing and marketing of branded and non-branded basmati rice in the domestic and overseas market. The company has a market cap of over Rs 1,150 crore and has reported positive numbers in its Quarterly Results and annual results. The company has a good return on equity (ROE) track record: a 3-year ROE of 32.4 per cent and has been maintaining a healthy dividend payout of 32.3 per cent.

Today, the shares of GRM Overseas Ltd gained 4.75 per cent to an intraday high of Rs 197.50 per share from its previous closing of Rs 188.55 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE. The stock gave multibagger returns of 530 per cent in 3 years, 1,140 per cent in 5 years and a whopping 9,650 per cent over a decade. Investors should keep an eye on this Small-Cap stock.

About Sauce: The company was founded by Manu Chandra and is a consumer-focused venture capital fund, partnering with brands in F&B, personal care, lifestyle, etc. They engage closely with founders through a high-engagement model and maintain a focused portfolio strategy. They have previously backed market disruptors like Mokobara, XYXX, Innovist, Hocco Ice Creams and The Whole Truth Foods from the inception stage.

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