Madhusudhan Kela to get 13,80,000 free shares of this multibagger FMCG stock; Here’s why!

On Tuesday, the shares of GRM Overseas Ltd plunged 1.12 per cent to Rs 472.05 per share from its previous closing of Rs 473.15 per share. The company has a market cap of over Rs 2,800 crore. Madhusudhan Kela's family company, Singularity Equity Fund I, led by veteran investor Madhu Kela and his son Yash Kela, purchased 6,90,000 shares.

GRM Overseas Ltd has announced two major corporate decisions, both of which are pending shareholder approval. The first is a proposal to increase the company's Authorised Share Capital from the current Rs 20 crore (10 crore shares) to Rs 45 crore (22.50 crore shares), necessitating an amendment to Clause V of the Memorandum of Association. Concurrently, the Board has approved a bonus Share Issue in the ratio of 2:1, meaning shareholders will receive two new shares for every one share they currently hold. To facilitate the required shareholder consent, the company has set the remote e-voting period from Saturday, December 06, 2025. In the bonus, Madhusudhan Kela's family company holds 6,90,000 shares and as a bonus, he will receive to get 13,80,000 free shares of this multibagger FMCG stock in the ratio 2:1.

Since its start in 1974 as a rice processing and trading house, GRM Overseas Ltd has evolved into a major consumer staples organisation and one of India's top five rice exporters. The company initially focused on the Middle East and the United Kingdom but has since expanded its market to 42 countries. With three processing units in Haryana and Gujarat, GRM has an annual production capacity of 440,800 MT and a large warehousing facility near the ports of Kandla and Mundra. The company sells its products under brands like "10X," "Himalaya River," and "Tanoush," as well as through private labels, and has recently focused on direct-to-consumer sales through major retailers both in India and abroad, while maintaining strict quality control.

According to Quarterly Results, the net sales increased by 15 per cent to Rs 362.43 crore and net profit increased by 61 per cent to Rs 14.76 crore in Q2FY26 compared to Q2FY25. Looking at its half-yearly results, the net sales increased by 1 per cent to Rs 689.21 crore and net profit increased by 24 per cent to Rs 33.85 crore in H1FY26 compared to H1FY25. In its annual results, the net sales increased by 2.2 per cent to Rs 1,374.2 crore and net profit increased by 1 per cent to Rs 61.24 crore in FY25 compared to FY24.

The shares of the company have an ROE of 16 per cent and an ROCE of 14 per cent with 3 years ROE track record of 20 per cent. The stock gave multibagger returns of 1,985 per cent in 5 years and a whopping 11,000 per cent over a decade.

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