12:47 rights issue & Penny stock below Rs 10: Company to Expand Consumer Reach, Plans to Double its Store Network

Sarveshwar Foods Limited (SFL), a prominent Indian agro and organic FMCG company, is set to significantly expand its consumer reach by doubling its retail store network within a year. Currently, SFL operates 8 Sarveshwar Food Stores and 6 NIMBARK Organic Stores, in addition to its strong presence on major e-commerce platforms. The company is excited to announce the opening of a new NIMBARK Organic Signature Store in Chandigarh, which will increase the total number of NIMBARK stores to 7 and the overall store count to 15. This expansion aligns with SFL's aggressive growth strategy to bolster its retail footprint across India and make its premium organic products from the Himalayas more accessible to consumers.

SFL's retail strategy focuses on providing direct access to its diverse product portfolio, which includes exclusive Sarveshwar Food Stores for premium rice and NIMBARK Organic Stores offering a wide range of organic pulses, flours, dry fruits, superfoods and unique Himalayan products like Shilajit and Gucci mushrooms. Beyond its dedicated stores, SFL also maintains retail counters within mega chains and supermarkets and distributes through online platforms such as Amazon, Flipkart, Blinkit and its own e-commerce site. With existing outlets spread across Jammu, Srinagar, Ludhiana, Chandigarh, Lucknow, Khanpur, Punjab and Delhi NCR, SFL is actively exploring additional high-potential markets to further enhance its direct-to-consumer connection and expand the reach of its premium and organic offerings.

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The company is also launching a Rights Issue to raise Rs 150 crore, following approvals from its Board and in-principle nods from BSE and NSE. The issue, finalised on August 18, 2025, will offer 24,99,10,469 fully paid-up Equity Shares at Rs 6 per share (including a Rs 5 premium), payable in full on application. The Record Date for eligible shareholders is August 22, 2025, with a Rights Entitlement Ratio of 12 fully paid-up rights equity shares for every 47 shares held. If fully subscribed, SFL's outstanding equity shares will increase to 1,22,87,26,469.

About the Company

Sarveshwar Foods Limited (SFL), an ISO 22000:2018, USFDA and BRC-certified company, specialises in manufacturing, trading, processing and marketing branded and unbranded basmati and non-basmati rice globally. With over 130 years of heritage, SFL, based in Jammu and Gandhidham, also offers a range of "NIMBARK" organic products, grown without artificial fertilisers in the Himalayan foothills. SFL utilises a multi-channel sales strategy, including conventional distribution, proprietary retail outlets and e-commerce platforms like Amazon and Flipkart.

According to Quarterly Results, the net sales increased by 29.3 per cent to Rs 301.35 crore and net profit increased by 127.5 per cent to Rs 7.02 crore in Q1FY26 compared to Q1FY25. In FY25, net sales increased by 31 per cent to Rs 1136.23 crore and net profit increased by 60 per cent to Rs 26.92 crore compared to FY24.

The company has a market cap of over Rs 800 crore and has delivered good profit growth of 36.3 per cent CAGR over the last 5 years. The stock is up by 50 per cent from its 52-week low of Rs 5.63 per share and has given multibagger returns of over 2,000 per cent in 5 years.

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