Synopsis:
A leading food producer is issuing ₹149.95 crore of rights shares, fueled by strong quarterly growth with 29% revenue and 133% profit jumps. The business excels in rice varieties and advanced packaging, aiming to strengthen working capital and operations.
As of FY25, India’s agricultural sector continues its strong performance, serving as a key pillar of the national economy. The sector is projected to achieve a robust Gross Value Added (GVA) growth of 4.6% for the fiscal year. This growth is largely driven by a record foodgrain production of nearly 354 million tonnes, positioning the sector for sustained progress.
With a market capitalization of Rs 836.89 crore, the share of Sarveshwar Foods Ltd were trading at Rs 8.55 per share, decreasing around 2.40 percent as compared to the previous closing price of Rs 8.76 apiece.
Rights Issue
Sarveshwar Foods has announced a ₹149.95 crore rights issue, offering 24.99 crore shares at ₹6 each with a face value of ₹1. Shareholders will receive 12 rights shares for every 47 held (12:47 ratio). The record date is August 22, 2025, with the last date to buy shares being August 21, 2025. The issue will be listed on the BSE and NSE.
The company plans to use the net proceeds from its issue to boost both current and additional working capital needs. This will support day-to-day business operations and growth. Additionally, part of the funds will be allocated for general corporate purposes, providing financial flexibility for ongoing or strategic business activities.
The company delivered strong Q1FY26 results, with revenue rising 29% year-on-year to ₹301.35 crore from ₹233.05 crore. Net profit showed a sharp improvement, jumping 133% to ₹7 crore from ₹3 crore, highlighting robust operational performance and improved profitability compared to the same quarter last year.
Sarveshwar offers a comprehensive selection of Indian rice, including Basmati, Pusa Basmati, Sharbati, PR 11, and IR 8 varieties. Products come in a wide range of packaging sizes and types, such as PP, HDPE, jute, and fabric bags. Advanced automated and hygienic packaging retains freshness, aroma, and natural flavor, ensuring top quality for consumers.
Written by Abhishek Singh
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