FIIs bought 8.90 crore shares of this multibagger penny stock at Rs 13.40 with 2,400 per cent returns: Company is expanding of business with opening of new office in Delhi

The stock gave multibagger returns of 400 per cent in just 1 year and of a whopping 2,400 per cent in 3 years.

Sarveshwar Foods Limited celebrates the grand opening of its new corporate office in New Delhi, marking a significant step in its strategic growth. This expansion reflects the company's commitment to excellence as it broadens its reach and strengthens its regional presence. The new office complements existing ones in Jammu & Kashmir and Mumbai, enhancing operational efficiency and regional connectivity. This strategic move positions them to access valuable resources and tap into a renowned talent pool known for innovation and expertise. Committed to sustainable growth, fostering innovation, and delivering shareholder value, Sarveshwar Foods signifies its dedication to excellence through this expansion, furthering its efforts to enhance value for all stakeholders.

After rising nearly 400 per cent over the period of 12 months, shares of Sarveshwar Foods Limited (SFL) are undergoing a correction and have hit the lower circuit for the second straight day. Today, shares of Sarveshwar Foods Limited (SFL) plunged 5 per cent to Rs 13.40 per share from its previous closing of Rs 14.10. The 52-week high of the stock is Rs 15.55 and the 52-week low of Rs 2.08.  

The company aims to gather Rs 9,894 lakhs for its long-term expansion strategy through the issuance of 10,20,00,000 warrants at Rs 9.70 per warrant to non-promoter investors, which are convertible into equity shares valued at Rs 1 each, contingent upon both shareholder and regulatory approvals. Additionally, it plans to secure an extra Rs 100 crore via various avenues such as a Qualified Institutional Placement (QIP), American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs), or other legally permissible methods, with fundraising possibly occurring in multiple tranches, each capped at Rs 50 crore.

The specific terms, to be determined later by the board, will adhere to pertinent regulations, including the Companies Act, 2013, SEBI regulations, and other applicable guidelines. Notable allotments in this endeavour include Eminence Global Fund PCC - Eubilia Capital Partners Fund I with 4,75,00,000 shares, Radiant Global Fund-Class B Participating Shares with 2,55,00,000 shares, and Nova Global Opportunities Fund PCC-Touchstone with 1,60,00,000 shares.

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 Rs 1,325 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 400 per cent in just 1 year and of a whopping 2,400 per cent in 3 years.

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

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