2:1 Bonus Share & 10:1 Stock Split in FY24: Multibagger penny stock under Rs 10 in focus as Board allotment of 10,20,00,000 fully convertible warrants on preferential basis!
From Re 0.70 to Rs 9.43 per share, the stock gave multibagger returns of over 1,200 per cent in 3 years.
Sarveshwar Foods Limited's Board of Directors, at their meeting held on July 25, 2024, approved the allotment of 10,20,00,000 fully convertible warrants to non-promoter, public category investors on a preferential basis at Rs 9.70 per warrant. This allotment is subject to shareholder approval and receipt of necessary regulatory clearances. Each warrant can be converted into one equity share of Re 1 face value within 18 months of allotment, with 25 per cent of the warrant price payable upfront and the balance payable within 18 months. These warrants are subject to a lock-in period.
Earlier, Sarveshwar Foods Ltd joined hands with Boomitra O2C Tech India to implement sustainable farming practices across 45,000 acres cultivated by 17,000 farmers. This collaboration aims to enhance agricultural productivity, improve soil health, and reduce greenhouse gas emissions. Boomitra, an expert in the carbon market, will guide farmers in adopting regenerative agriculture techniques. By transitioning to these methods, farmers can expect higher crop yields and healthier soil. Moreover, the reduced carbon footprint will generate carbon credits, providing an additional income source for both the farmers and Sarveshwar Foods.
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About Sarveshwar Foods Ltd
Today, shares of Sarveshwar Foods Ltd plunged 1.53 per cent to Rs 9.43 per share from its previous closing of Rs 9.16 with an intraday high of Rs 9.43 and an intraday low of Rs 9.17. The stock’s 52-week high is Rs 15.73 and its 52-week low is Rs 3.22.
For over 130 years, Sarveshwar Foods Limited (SFL) in Jammu & Kashmir has been a leading name in rice cultivation, processing, and trade. They handle both Basmati and non-Basmati varieties for domestic and international markets. Himalayan snowmelt nourishes their crops alongside organic manure, reflecting their commitment to sustainable practices. This dedication to eco-friendly methods extends to their ‘NIMBARK’ brand of organic products, which embodies their philosophy of promoting a ‘SATVIK’ lifestyle focused on conscious living. Notably, SFL holds a significant achievement as the first private-sector food company in Jammu & Kashmir to be listed on both the National Stock Exchange (SARVESHWAR) and the Bombay Stock Exchange (543688).
The company has a market cap of over Rs 900 crore with a 3-year CAGR of 114 per cent. According to Quarterly Results, the net sales increased by 90.5 per cent to Rs 247.32 crore and net profit increased by 146.2 per cent to Rs 4.61 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 26.2 per cent to Rs 869.59 crore and net profit increased by 119.2 per cent to Rs 17.34 crore in FY24 compared to FY23.
The company's shares have ex-traded bonus shares and stock split in the financial year 2023 – 2024, i.e., 2:1 bonus shares and stock split from a face value of Rs 10 to Rs 1. The stock gave multibagger returns of 190 per cent in just 1 year. From Re 0.70 to Rs 9.43 per share, the stock gave multibagger returns of over 1,200 per cent in 3 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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