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Business News/ Markets / Stock Markets/  Small-cap FMCG stock Sarveshwar Foods hits 52-week high after declaration of fundraise

Small-cap FMCG stock Sarveshwar Foods hits 52-week high after declaration of fundraise

In its board meeting today, the small-cap company declared fundraising through the issuance of fresh shares on a preferential basis

The small-cap company aims to raise up to ₹198.94 crore, out of which ₹100 crore will be raised through QIP and the rest ₹98.94 crore through the preferential issues. (Photo: AP)Premium
The small-cap company aims to raise up to 198.94 crore, out of which 100 crore will be raised through QIP and the rest 98.94 crore through the preferential issues. (Photo: AP)

Shares of Sarveshwar Foods Ltd witnessed strong buying interest ahead of its board meeting as the small-cap company was considering the proposal for fundraising via the preferential basis and issuance of warrants. The company board has declared and approved fundraising via the issuance of fresh shares and warrants, which triggered buying interest among Dalal Street bulls.

After the announcement of fundraising by the company board, the small-cap FMCG stock extended its early morning gains and touched an intraday high of 13.50 apiece on BSE. This intraday high turned out its new 52-week peak as well. So, the small-cap stock touched a new 52-week peak after the announcement of fundraising via the issuance of fresh shares.

Sarveshwar Foods fundraises news

The small-cap FMCG company informed Indian stock market bourses about the fundraising move saying, "In terms of Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held on today i.e. Thursday, February 22, 2024, inter-alia considered and approved fund raising to augment t6he long-term financial resources."

Also Read: Jio Financial Services shares jump 14%; m-cap crosses 2 lakh crore

The FMCG company went on to add that in terms of the company’s long-term business growth plans and to augment the long-term financial resources of the Company through raising funds by way of the following methods:

A] Preferential Issue of 98.94 crore: By way of creating, issuing and allotting up to 10,20,00,000 (Ten Crores and Twenty Lakhs Only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share having face value of Re.1/- per Warrant, to persons belonging to “Non-Promoter, Public Category", as detailed in Annexure-I, on preferential basis at an issue price of Rs. 9.70/- (Nine Rupees and Seventy Paisa Only) per Warrant, which is higher than the floor price determined in accordance with the provision of Chapter V of SEBI ICDR Regulations, payable in cash for aggregating amount of up to Rs. 9,894 Lakhs, subject to approval of shareholders and other regulatory authorities, as may be applicable in accordance with the provisions of Section 42 and Section 62(1)(c) of the Companies Act, 2013, as amended ("Act") read with Companies (Prospectus and Allotment of Securities) Rules, 2014, and Companies (Share Capital and Debentures) Rules, 2014 as amended ("Rules"), Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR Regulations") and other applicable laws, regulations, guidelines and rules.

B] QIP or any other Issue of not exceeding 100 Crore: By issuance and allotment of equity shares for another aggregate amount not exceeding 100 Crore (Rupees One Hundred Crore), by way of QIP’s, ADR, GDR, FCCB or any other method or combination thereof including series of Right Issue(s), each tranche not exceeding 50 Crore (Rupees Fifty Crores Only), on such terms (to be decided by the Board or a duly constituted committee of the Board at a later date) as are by the Companies Act, 2013 and the rules made thereunder and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other applicable regulations, guidelines etc. as amended up to date.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 23 Feb 2024, 12:57 PM IST
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