Multibagger FMCG stock in green after Board allots 2,31,54,000 equity shares to 21 promoters & non-promoters on conversion of warrants!
Kiran DSIJ / 09 Feb 2026 / Categories: Multibaggers, Trending
Madhusudhan Kela's family company, Singularity Equity Fund I, led by veteran investor Madhu Kela and his son Yash Kela, holds 25,20,000 shares, or a 1.37 per cent stake, in the company.
On Monday, the shares of GRM Overseas Ltd surged 2.41 per cent to Rs 169.25 per share from its previous closing of Rs 165.30 per share. The company has a market cap of over Rs 3,000 crore. Madhusudhan Kela's family company, Singularity Equity Fund I, led by veteran investor Madhu Kela and his son Yash Kela, holds 25,20,000 shares, or a 1.37 per cent stake, in the company.
GRM Overseas Limited has announced the allotment of 2,31,54,000 equity shares following a Board of Directors meeting held on February 6, 2026. This issuance primarily stems from the conversion of 77,18,000 warrants held by 21 promoters and non-promoters, who exercised their rights by paying the remaining 75 per cent of the issue price—totalling Rs 86.83 crore at Rs 112.50 per warrant. Additionally, in accordance with the 2:1 bonus issue approved in December 2025, the company allotted a further 1,54,36,000 equity shares to these warrant holders. This move effectively completes the conversion process, leaving no outstanding warrants pending.
The allotment has led to a notable expansion of the company’s capital base. The paid-up share capital of GRM Overseas has increased from Rs 36.81 crore (represented by 18,40,56,000 shares) to Rs 41.44 crore (consisting of 20,72,10,000 equity shares of Rs 2 each). These newly issued shares will rank pari passu with existing equity, ensuring that new shareholders have the same rights and dividend entitlements as current investors. By successfully converting the remaining warrants within the stipulated 18-month window, the company has finalised this round of preferential fundraising and bonus distribution.
About the Company
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 30 per cent to Rs 483 crore and net profit increased by 29 per cent to Rs 14.76 crore in Q3FY26 compared to Q3FY25. Looking at its nine-month results, the net sales increased by 11 per cent to Rs 1,172 crore and net profit increased by 29 per cent to Rs 53 crore in 9MFY26 compared to 9MFY25. 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 a 3-year ROE track record of 20 per cent. The stock gave multibagger returns of 1,220 per cent in 5 years and a whopping 14,000 per cent over a decade.
Disclaimer: The article is for informational purposes only and not investment advice.