Sarveshwar Foods Announces Rights Issue and Reports Changes in Promoter Shareholding

Sarveshwar Foods , a prominent player in the food industry, recently announced a rights issue and reported significant changes to its shareholding structure, including alterations in the ownership stake of its promoter, Rohit Gupta.

Rights Issue Details

Sarveshwar Foods Limited has announced a rights issue of up to 24,99,10,469 equity shares at ₹6.00 per share, including a premium of ₹5.00 per equity share. The issue is being offered to existing shareholders in the ratio of 12 rights equity shares for every 47 shares held. The record date for the rights issue was August 22.

The company has published the post-issue advertisement dated September 17 in multiple newspapers including Financial Express, Janasatta, Daily Taskeen, and Daily Roshni across English, Hindi, and Urdu editions. The advertisement provides details about subscription, basis of allotment, and other procedural information related to the rights issue.

Shareholding Changes

According to the disclosure made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Rohit Gupta's shareholding underwent the following changes:

Particulars	Before Rights Issue	After Rights Issue
Number of Shares	50,30,37,872	50,30,37,872
Percentage Holding	51.39%	40.93%
Total Share Capital	97,88,16,000	1,22,87,26,469

Impact of Rights Issue

The rights issue has led to a dilution in Gupta's percentage holding, despite no change in his absolute number of shares. This reduction is attributed to the increase in the company's total equity share capital, which expanded from 97,88,16,000 shares to 1,22,87,26,469 shares, all with a face value of ₹1.00 each.

Key Points

Rohit Gupta's shareholding decreased from 51.39% to 40.93% due to dilution.
The absolute number of shares held by Gupta remained constant at 50,30,37,872.
Sarveshwar Foods' total equity share capital increased by 25,09,10,469 shares.

Regulatory Compliance

The disclosure was made to both the National Stock Exchange of India Limited and BSE Limited in compliance with SEBI regulations.

This development marks a significant change in the ownership structure of Sarveshwar Foods, potentially impacting the company's governance and decision-making processes.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.37%	-10.30%	-33.58%	-18.67%	-40.00%	+1,321.05%

Sarveshwar Foods , a prominent player in the basmati and non-basmati rice industry, has successfully concluded its rights issue, raising Rs. 149.95 crores and marking a significant milestone in the company's financial journey.

Rights Issue Details

The rights issue, which closed on September 16, offered 24,99,10,469 equity shares at Rs. 6.00 per share, including a premium of Rs. 5.00 per share. The issue was met with overwhelming response from investors, resulting in an oversubscription of 1.35 times. The company received subscriptions for 33,85,67,058 shares, surpassing the initial offering.

Key Highlights

Item	Details
Issue Size	24,99,10,469 fully paid-up equity shares
Issue Price	Rs. 6.00 per share (Face value: Rs. 1.00, Premium: Rs. 5.00)
Total Funds Raised	Rs. 149.95 crores
Subscription Ratio	12 rights equity shares for every 47 fully paid-up equity shares held
Record Date	August 22
Oversubscription	1.35 times

Utilization of Funds

According to the company's Letter of Offer dated August 21, the funds raised through this rights issue will be primarily used for:

Augmenting existing and incremental working capital requirements
General corporate purposes

Listing and Allotment

The allotment and listing formalities for the new shares are expected to be completed as follows:

BSE Listing: On or about Wednesday, September 17
NSE Listing: On or about Friday, September 19

Management Commentary

Mr. Rohit Gupta, Chairman of Sarveshwar Foods Limited, expressed his gratitude towards the shareholders, stating, "I express my sincere thanks to our dear and esteemed shareholders for participating in this Rights Issue and making it a new and proud landmark in the history of India's capital market. Our shareholders have always been our biggest source of strength."

Company Profile

Sarveshwar Foods Limited is an ISO 22000:2018 and USFDA certified company engaged in the manufacturing, trading, processing, and marketing of branded and unbranded basmati and non-basmati rice. The company operates primarily in Jammu & Kashmir and Gujarat, serving both domestic and international markets.

Key features of Sarveshwar Foods Limited include:

BRC, Kosher, NPPO USA & CHINA, and NOP-USDA Organic certifications
A legacy of over 130 years in the rice industry
Expansion into premium FMCG and organic products under the brand name 'NIMBARK'
Multi-channel sales strategy including conventional channels, retail outlets, and e-commerce platforms

As the first private sector NSE and BSE listed food company in Jammu & Kashmir, Sarveshwar Foods Limited continues to strengthen its position in the market with this successful rights issue, paving the way for future growth and expansion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult financial advisors before making investment decisions.