Stock Split and Bonus Approval Propel Sarveshwar Foods Shares to Upper Circuit

On Wednesday, the board of Sarveshwar Foods approved significant corporate actions, including a stock split and a bonus issue, aiming to enhance shareholder value. The company revealed its plans through separate filings with the exchanges, signaling its commitment to rewarding its investors.

Stock Split: Enhancing Share Liquidity and Accessibility

In a notable move, the board sanctioned a sub-division of its equity shares in a 1:10 ratio. This means that every existing share with a face value of Rs 10 will be split into ten equity shares, each carrying a face value of Re 1. The stock split aims to increase the number of outstanding shares, making them more accessible and liquid for potential investors.

Bonus Equity Shares: Rewarding Shareholders

To further demonstrate their commitment to shareholders, the company board approved the issuance of bonus equity shares in a 2:1 ratio. Eligible investors will receive two additional equity shares for each existing share with a face value of Re 1 held by them as of the record date. This bonus issue seeks to reward loyal shareholders and enhance their overall ownership in the company.

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Share Price Surge and Capital Clause Alteration

Following the announcement of these positive developments, the market reacted favorably, driving Sarveshwar Foods' shares to surge by 10 per cent, hitting their upper circuit limit at Rs 113.70 on Wednesday. The company's market capitalization reached an impressive Rs 345 crore. The board also approved the alteration of the capital clause in the company's memorandum of association, which is subject to approval from the shareholders in the ensuing extraordinary general meeting (EGM).

Sarveshwar Foods: A Growth Trajectory

Over the past three years, Sarveshwar Foods has demonstrated remarkable growth, with its shares rallying by an astounding 1,250 per cent from its covid-19 lows. In the last year alone, the stock has surged over 100 per cent, showcasing its strong performance in the market. Even in the past month, it has delivered an impressive return of 65 per cent.

A Leading Rice Company

Established in 2004, Sarveshwar Foods is a Jammu & Kashmir-based rice company that specializes in the manufacturing, trading, and export of basmati and non-basmati rice. Their diverse range includes traditional Indian Basmati rice, 1121 Basmati Rice, Pusa Basmati Rice, Sharbati Rice, PR 11 rice, IR 8 rice, among others. With its focus on quality and a robust growth trajectory, Sarveshwar Foods continues to strengthen its position in the rice industry.