Sarveshwar Foods Limited , an integrated food company specializing in premium basmati rice, organic foods, and FMCG staples, has announced a significant rights issue to raise capital for its expansion plans.

Rights Issue Details

The company plans to issue 24.99 crore equity shares at a price of ₹6 per share, aiming to raise ₹149.95 crore through this rights offering. Here are the key details of the rights issue:

Utilization of Funds

According to the company, the net proceeds from the rights issue will be used to meet existing and incremental working capital requirements, along with other objectives outlined in the issue document.

Company Overview

Sarveshwar Foods Limited, headquartered in Jammu, is an ISO 22000:2018 and USFDA certified company. The firm boasts a strong legacy of over 130 years in the food industry, focusing on manufacturing, trading, processing, and marketing branded and unbranded basmati and non-basmati rice in domestic and international markets.

Management's Perspective

Mr. Anil Kumar, Managing Director of Sarveshwar Foods Limited, commented on the rights issue, stating, "We have built a strong legacy of more than 130 years, rooted in trust, quality, and sustainability. From the fertile foothills of the Himalayas to households across India and international markets, we have consistently delivered authentic, healthy, and premium food products under our flagship brands Sarveshwar and Nimbark."

He further added, "The funds raised will strengthen our working capital, support expansion across FMCG and organic categories, and enhance our distribution reach in India and abroad. We remain committed to creating long-term value while promoting a healthier and more sustainable lifestyle through our products."

Recent Financial Performance

The company's recent financial performance, as reported in the LODR data, shows:

Consolidated Results

• Revenue: ₹1,13,622.87 lakh
• EBITDA: ₹6,913.16 lakh
• Net Profit: ₹2,713.82 lakh

Standalone Results

• Revenue: ₹55,638.51 lakh
• EBITDA: ₹3,181.44 lakh
• Net Profit: ₹881.89 lakh

The rights issue is set to open on September 2, 2025, providing existing shareholders an opportunity to increase their stake in the company and support its growth initiatives.

Sarveshwar Foods , a prominent player in the rice industry, has announced a significant rights issue to fuel its growth plans and strengthen its financial position. The company is set to raise up to ₹149.95 crore through the issuance of equity shares, marking a strategic move to capitalize on expanding market opportunities and enhance its operational capabilities.

Rights Issue Details

The company plans to issue up to 24,99,10,469 equity shares at ₹6 per share, comprising a face value of ₹1 and a premium of ₹5 per share. Existing shareholders will have the opportunity to subscribe to 12 rights equity shares for every 47 fully paid-up equity shares held as of the record date, August 22, 2025.

Funding Allocation and Growth Strategy

Anand Sharda, Chief Financial Officer of Sarveshwar Foods, shed light on the company's plans for utilizing the funds raised through the rights issue. He stated, "This ₹150 crore projection is based on our overall turnover projections for the coming years. The entire amount will be utilized for working capital needs."

Kamal Kant Sahoo, Chief Strategy Officer, further elaborated on the financial strategy behind the move. "We're anticipating around 30% plus growth from last year. Given our working capital cycle of around 170 to 180 days, this rights issue will help us de-leverage our balance sheet. Approximately ₹130 crores out of the ₹150 crores raised will be used for this purpose," Sahoo explained.

Expansion and Market Presence

Rohit Gupta, Chairman of Sarveshwar Foods, outlined the company's ambitious plans for market expansion, particularly in the export segment. "Currently, exports contribute about 15% to our total revenue. We're targeting to increase this to 25-30%, potentially even up to 50%," Gupta stated. He highlighted plans to establish depots in key markets like the US and Europe to strengthen the company's global presence and improve profitability.

Product Portfolio and Distribution Strategy

Sarveshwar Foods is focusing on both its traditional rice business and its organic food segment under the Nimbark brand. The company operates 15 stores, including six dedicated to organic products, with plans for further expansion. Gupta emphasized the company's strategy to strengthen its distribution network, particularly through general trade channels across India.

Financial Performance

The company reported strong financial results for Q1 FY2026, with total income reaching ₹301.00 crores, marking a 29% year-on-year growth. EBITDA stood at ₹17.13 crores, up 36% year-on-year, with an improved EBITDA margin of 5.56%. Net profit saw a significant jump of 120% year-on-year, reaching ₹7.02 crores.

Future Outlook

With a focus on deepening distribution in high-potential domestic markets, scaling up exports, and continuing investment in innovation, Sarveshwar Foods appears poised for sustained growth. The rights issue is expected to play a crucial role in supporting these initiatives and strengthening the company's market position in both domestic and international markets.

As Sarveshwar Foods moves forward with its expansion plans and rights issue, investors and market watchers will be keenly observing how these strategic moves translate into long-term growth and value creation for the company.