Multibagger microcap rises 30% in a week over stock split, bonus issue buzz

Shares of Sarveshwar Foods are on a roll this week as the counter has logged a 30 per cent rally since Monday so far on the back of stock split and bonus issue buzz. The stock extended its gains on Friday and gained about 10 per cent during the session.

The company board of directors of Sarveshwar Foods set to meet on August 2 (Wednesday) to consider and approve the proposal of sub-division of its equity shares in a manner determined by the company board, the company said in an exchange filing.

The company board will also consider the proposal of issuance of bonus shares to shareholders of the company, it said. The approval to both the actions will lead to increase in authorised share capital of the company and subsequent alteration of memorandum of association of the company, it added.

Sarveshwar Foods informed about its board meeting on Monday, July 17 and the has seen a run up 30 per cent since then. The stock logged a rise of 10 per cent to Rs 88.05 on Friday, before giving up its gains partially. The scrip had settled at Rs 79.62 on Thursday.

Sarveshwar Foods have rallied about 900 per cent in the last three years, from its covid-19 lows, while the stock has jumped around 60 per cent in the last one year. Even in the last one month, it has delivered a return of 20 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.

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