Sarveshwar Foods board approves allotment of bonus shares

Sarveshwar Foods Ltd, whose shares traded ex-split and ex-bonus on Monday, September 18, has approved and allotted the bonus shares to the eligible shareholders of the company. The company was informed about the same through a separate exchange filing.

Shares of Sarveshwar Foods were split in 1:10 ratio, indicating that every share of the company with a face value of Rs 10 each will be split in 10 shares with a face value of Re 1 each. However, the stock has been trading on an adjusted basis at the bourses, subsequent to both corporate actions.

The company also issued bonus shares in a 2:1 ratio, meaning that an eligible shareholder will get two additional/bonus shares with a face value of Re 1 each for each share of the company held as on record date. The bonus issue was considered post sub-division of the equity shares.

The company board allotted 65,25,44,000 Equity shares of Re 1 each as fully paid bonus shares to the existing shareholders of the company as on record date, said company in the exchange filing. "Post the above allotment, the paid-up equity share capital of the company would stand at Rs 97,88,16,000 divided into 97,88,16,000 equity shares of Re each," it added.

The company board had finalized Friday, September 15, 2023 as the record date for both corporate actions earlier in the month. It meant that shareholders, those having the delivery of the shares in their demat accounts as on the record date, will be considered eligible for the subdivision and bonus issue.

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 settled at Rs 4.9 on Monday, commanding a total market capitalization of close to Rs 480 crore. The stock has more than doubled in the last three months. Sarveshwar Foods have rallied about 1,500 per cent in the last three years, from its covid-19 lows on an adjusted basis.

Sarveshwar Foods, which was incorporated in 2004, is a rice company, engaged in manufacturing, trading and export basmati and non-basmati rice. The Jammu & Kashmir-based company offers a complete range of Indian traditional Basmati rice, 1121 Basmati Rice, Pusa Basmati Rice, Sharbati Rice, PR 11 rice, IR 8 rice, among others.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also Read | Indian Overseas Bank shares continue stellar show, zoom 46% in four sessions. Here are tech levels to watch

Also Read | SAMHI Hotels IPO fully subscribed on final day of bidding; QIBs lead bidding process