Back2:1 bonus shares, 1:10 stock split: Small-cap multibagger stock jumps 9% after announcement
Multibagger stock: Small-cap company board has approved issuance of two bonus shares for every one share held by the eligible shareholders
PremiumMultibagger stock: Sarveshwar Foods shares are one of the multibagger stocks that Indian stock market has delivered in post-Covid rebound. In last three years, this small-cap stock has risen from around ₹8.50 to ₹122.50 apiece on NSE, logging around 1350 per cent appreciation in this time. But, there is one more news that shareholders of the company may cheer. The board of directors of the company has announced bonus shares and stock split in its meeting held on Wednesday. the small-cap company board considered and approved issuance of bonus shares in 2:1 ratio whereas it approved stock split in 1:10 ratio.
Informing Indian stock market about the decision, the multibagger small-cap company said, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at their meeting held on Wednesday, August 02, 2023, inter-alia, considered and approved sub-division/split of company’s 1 (one) Equity Shares of the Company having a face value of Rs. 10/- each into 10 (Ten) Equity shares of the company having face value of Re. 1 each, subject to the approval of shareholders to be obtained in the ensuing extra-ordinary general meeting and such other approvals as may be required. In this regard, the record date for such division/ split shall be intimated to the stock exchanges in due course."
The small-cap company went on to add that board of directors of the company has approved the proposal of issuance of Bonus equity shares to the securityholders of the Company in the ration of 2:1 i.e. 2 (Two) Equity Shares for every 1 (One) Equity Shares having a face value of Re. 1/- (considering the post sub-division/split of face value of equity shares) held by the Eligible securityholders of the Company as on the record date, subject to the approval of shareholders to be obtained in the ensuing extra-ordinary general meeting and such other approvals as may be required. In this regard, the record date for such bonus issue shall be intimated to the stock exchanges in due course.
Sarveshwar Foods share price history
As mentioned above, this small-cap stock has delivered whopping return to it shareholders in recent years. In the last one month, this small-cap stock has surged to the tune of 75 per cent whereas in YTD time, it has risen around 35 per cent. In last one year, this small-cap stock has surged from ₹54.50 to ₹121.50 apiece levels, logging more than 120 per cent appreciation during this time.
However, in post-Covid rebound, this small-cap stock ascended from around ₹8.50 per share to ₹121.50 levels, delivering near 1350 per cent return to its shareholders in these near three years.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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