Sarveshwar Foods shares hit upper circuit as co announced record date for stock split, bonus issue

Shares of Sarveshwar Foods Ltd hit an upper circuit on Friday after the company announced record date for the purpose of sub-division of its equity shares and bonus issue. The company informed about the same through an exchange filing after trading hours on Thursday.

The company board has fixed Tuesday, September 5, 2023 as the record date for the aforementioned corporate actions, it said in the exchange filing. Investors having the delivery of shares in their demat account as of the record rate will be considered eligible for the same.

Shares of Sarveshwar Foods will be sub-divided or split in a 1:10 ratio. It means that each 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, subsequent to the corporate action.

The company will also issue bonus shares in a 2:1 ratio, which means eligible shareholders will get two shares, with a face value of Re 1 each, for every share held in the account, with a face value of Re 1 each. This means the bonus issue shall be considered post sub-division of the equity shares.

Shares of Sarveshwar Foods hit an upper circuit of 5 per cent to Rs 130.85 on Friday, commanding a total market capitalization of more than Rs 400 crore. The scrip had settled at Rs 124.65 in the previous trading session on Thursday.

Sarveshwar Foods have rallied about 1,400 per cent in the last three years, from its covid-19 lows, while the stock has jumped about 110 per cent from its 52-week low at Rs 62.60. Even in the last one month, it has delivered a return of 30 per cent in the current month.

Sarveshwar Foods reported a 61 per cent rise in the net profit on a quarter-on-quarter (QoQ) basis to Rs 2.91 crore in the June 2023 quarter., The company had clocked a net profit of Rs 1.81 crore in the March 2023 quarter. Revenue from operations increased 45 per cent QoQ to Rs 187.68 crore in the quarter ended on June 30, 2023.

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.

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