Shares of Sarveshwar Foods hit upper circuit on Wednesday after the company board approved stock split and issue of bonus shares to the investors. The company announced the same during the day through separate exchange filings with the exchanges.
The company board of Sarveshwar foods has approved the sub-division of its equity shares in 1:10 ratio. It means that every share of the company with a face value of Rs 10 will be split in 10 equity shares with a face value of Re 1 each as on the record date.
The company board has also approved the proposal of issuance of bonus equity shares to the shareholders of the company in the ratio of 2:1. It means that eligible investors will get two equity shares for every one equity share having a face value of Re 1 held by them as on the record date.
The above-mentioned corporate action is subject to approval from the shareholders of the company, which shall be obtained in the ensuing extra-ordinary general meeting (EGM) and such other approvals as may be required. The record date for these actions shall be intimated to the stock exchanges in due course.
Following the announcement, shares of Sarveshwar Foods surged 10 per cent, hitting their upper circuit limit, to Rs 113.70 on Wednesday. The company was commanding a total market capitalization of Rs 345 crore. The scrip had settled at Rs 103.40 on Tuesday.
The company board also approved the alteration of capital clause of memorandum of association of the company consequent to aforesaid corporate actions, subject to approval from shareholders of the company.
Sarveshwar Foods have rallied about 1,250 per cent in the last three years, from its covid-19 lows, while the stock has jumped more than 100 per cent in the last one year. Even in the last one month, it has delivered a return of 65 per cent in the last one month.
Incorporated in 2004, Jammu & Kashmir based Sarveshwar Foods is a rice company, engaged in manufacturing, trading and export basmati and non-basmati rice, whose range includes the complete range of Indian traditional Basmati rice, 1121 Basmati Rice, Pusa Basmati Rice, Sharbati Rice, PR 11 rice, IR 8 rice, among others.
