Penny stock below Rs 10: Board announces 12:47 rights issue; Record date-August 22, 2025; Details inside!
DSIJ Intelligence-1 / 19 Aug 2025/ Categories: Penny Stocks, Trending
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 2,100 per cent in 5 years.
Sarveshwar Foods Limited (SFL) has announced the terms of its Rights Issue, aiming to raise up to Rs 150 crore. This follows approvals from the Board of Directors on August 11, 2025, and in-principle approvals from BSE and NSE on August 18 and August 14, 2025, respectively. The Rights Issue Committee, meeting on August 18, 2025, finalized the details: 24,99,10,469 fully paid-up Equity Shares will be issued at Rs 6 per share (including a premium of Rs 5), with the full amount payable upon application.
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The Record Date for determining eligible shareholders is Friday, August 22, 2025. The Rights Entitlement Ratio is set at 12 fully paid-up rights equity shares for every 47 fully paid-up equity shares held. Shareholders will receive Rights Entitlements (REs) in their demat accounts, which they can use to apply for the Rights Issue or renounce through on-market or off-market transfers. Failure to apply by the issue closing date will result in the lapse of Res. Post-issue, assuming full subscription, the total outstanding equity shares will increase from 97,88,16,000 to 1,22,87,26,469.
About the Company
Sarveshwar Foods Limited (SFL), an ISO and USFDA-certified company with additional global food safety accreditations, specialises in manufacturing, trading, processing and marketing branded and unbranded basmati and non-basmati rice. Operating from Jammu and Kashmir and Gujarat, SFL boasts a 130-year legacy and has expanded into other FMCG and organic products under the "NIMBARK" brand, sourced from the organic-rich Himalayan foothills. SFL utilises a diverse sales strategy encompassing conventional channels, proprietary retail outlets and e-commerce platforms and is notably the first private sector food company from Jammu & Kashmir to be listed on the NSE and BSE.
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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 2,100 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.