Multibagger FMCG stock in focus as board allots 37,14,000 equity shares to promoters on conversion of warrants!
Kiran DSIJCategories: Multibaggers, Trending
The stock gave multibagger returns of 950 per cent in 5 years and a whopping 16,000 per cent over a decade.
On Wednesday, the shares of GRM Overseas Ltd gained 0.43 per cent to Rs 162 per share from its previous closing of Rs 161.30 per share. The company has a market cap of over Rs 2,900 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 filed a disclosure under Regulation 29(2) of the SEBI (SAST) Regulations, 2011, regarding the allotment of 37,14,000 equity shares (face value of Rs 2 each). This allotment was made to the Promoter Group and Persons Acting in Concert (PAC), specifically Atul Garg, Mamta Garg, Hukam Chand Garg and Nipun Jain. The shares were issued following the conversion of warrants and the entitlement of reserved bonus shares, resulting in a post-acquisition diluted shareholding of 60.64 per cent for the group.
Following this transaction, the company’s total paid-up equity share capital increased from Rs 36,81,12,000 to Rs 41,44,20,000, represented by 20,72,10,000 equity shares. The formal intimation of this allotment was dated February 10, 2026, with the shares being listed on both the BSE and NSE. This move reflects the finalised conversion of convertible instruments into equity, solidifying the current capital structure and the promoter group's voting position in the company.
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 company's shares 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 950 per cent in 5 years and a whopping 16,000 per cent over a decade.
Disclaimer: The article is for informational purposes only and not investment advice.