GRM Overseas shares jump 6% as VC fund picks stake in subsidiary

Shares of GRM Overseas Ltd surged on Tuesday after the company announced to sell stake in its material subsidiary to a venture capital fund. The company informed about the same through an exchange filing on Monday and the stock is up about 10 per cent in the last two sessions.

GRM Overseas has sold more than three per cent stake in GRM Foodkraft Private Limited, a material subsidiary of the company to Sauce.vc (Sauce), a consumer-focused venture capital fund, said the company in the exchange filing.  Sauce has also acquired an additional one per cent stake from other shareholders. However, the company did not disclose the amount of stake sale.

Following the announcement, grmover-share-price-362997">shares of GRM Overseas surged more than 6 per cent to Rs 204 on Tuesday, commanding a total market capitalization of more than Rs 1,200 crore. The scrip had settled at Rs 192.35 in the previous trading session on Monday, up over 3 per cent.

GRM Overseas sells a variety of Basmati Rice under Brand 10X Zarda King XXL, Wheat flour (atta), gram flour (besan), bulgur (daliya), semolina (sooji), Flattened rice (poha) and more under its 10X Shakti brand. The company also has a ready-to-cook product portfolio including Hyderabadi Biryani, one-pot Moradabadi Biryani and others.

GRM Foodkraft has its presence in online and offline retail as well as the D2C segment. It has over 52 distribution centres, serving more than 1,60,000 kirana stores.

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Sauce, founded by Manu Chandra, is a consumer-focused venture capital fund, partnering with brands in food & beverage, personal care, lifestyle and more. They have previously backed market players like Mokobara, XYXX, Innovist, Hocco Ice Creams and The Whole Truth Foods from the inception stage.
 

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