Sarveshwar Foods shares jump 8% as company plans to set up procurement centres

Shares of Sarveshwar Foods Ltd surged during the trading session on Tuesday after the company announced plans to set up two procurement facilitation centres in Jammu & Kashmir. The company informed about the same through an exchange filing on Tuesday.

Sarveshwar Foods has announced setting up of two new SFL chaupals (procurement facilitation centre) for procurement of dry fruits and apples directly from farmers in Baramulla and Pulwama (Jammu & Kashmir), said the company in the exchange filing with the bourses.

Sarveshwar Food’s procurement facilitation centres are established with purposes to speed-up and smoothen the procurement by eliminating unnecessary leakages, delays, and logistic challenges; and to engage with the farmers from very beginning of the crop cycle, assist them at every stage of cultivation, provide full patronage, it added.

Following the announcement, shares of Sarveshwar Foods surged more than 8 per cent to Rs 7.14, commanding a total market capitalization of more than 700 crore. The scrip had settled at Rs 6.61 in the previous trading session. The stock has surged 245 per cent from its 52-week lows at Rs 2.07 apiece.

Sarveshwar Food intends to utilize its expertise to address the various challenges faced by the farmer through SFL-Choupals, and provide a platform to trigger a virtuous cycle of higher farm productivity, higher income, enlarged capacity for farmer risk management, which will eventually ensure consistent supply of quality, authentic farm products.

Sarveshwar Foods is an ISO and USFDA certified company, which is engaged in the business of manufacturing, trading, processing, and marketing of branded and unbranded basmati and non-basmati rice in the domestic and international markets.
 

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