Sarveshwar Foods Limited, a prominent player in the food industry, has announced a significant move to bolster its financial position through a rights issue. The company's Rights Issue Committee has approved the terms for raising Rs. 149.95 crore, marking a pivotal moment in its capital raising efforts.

Rights Issue Details

The rights issue, approved by the committee on August 18, 2025, involves the issuance of 24,99,10,469 fully paid-up equity shares with a face value of Re. 1 each. These shares will be offered at a price of Rs. 6.00 per share, which includes a premium of Rs. 5.00. This strategic pricing aims to make the offer attractive to existing shareholders while raising substantial capital for the company.

Entitlement Ratio and Record Date

Sarveshwar Foods has set an entitlement ratio of 12:47, meaning eligible shareholders will have the right to subscribe to 12 new shares for every 47 shares they currently hold. The company has fixed August 22, 2025, as the record date to determine shareholders' eligibility for participating in this rights issue.

Impact on Share Capital

Assuming full subscription to the rights issue, Sarveshwar Foods' outstanding equity shares are expected to increase significantly:

This expansion in share capital reflects the company's ambitious plans for growth and development.

Regulatory Approvals

The rights issue has received in-principle approvals from both the BSE Limited and the National Stock Exchange of India Limited, underscoring the regulatory compliance of the offering. These approvals were granted on August 18, 2025, and August 14, 2025, respectively.

Key Dates and Timelines

• Board Approval Date: August 11, 2025
• Rights Issue Committee Meeting: August 18, 2025
• Record Date: August 22, 2025

The company has made arrangements with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) to credit the Rights Entitlements (REs) to the demat accounts of eligible shareholders.

Conclusion

This rights issue represents a significant opportunity for Sarveshwar Foods to strengthen its financial position and fund its future growth initiatives. Shareholders will need to closely monitor the upcoming announcements regarding the issue opening and closing dates to participate in this capital raising endeavor.

As the food industry continues to evolve, Sarveshwar Foods' proactive approach to capital management signals its commitment to maintaining a strong market position and pursuing growth opportunities in the sector.

Sarveshwar Foods Limited , a prominent player in the food industry, has made significant announcements that are set to shape its financial future. The company's Board of Directors has approved a rights issue to raise up to Rs 150 crore and appointed a new Chief Financial Officer (CFO).

Rights Issue Details

The Board of Directors has given the green light for a rights issue of fully paid-up equity shares with a face value of Re 1 each. This move aims to raise up to Rs 150.00 crore, strengthening the company's financial position. The rights issue will be offered to eligible equity shareholders, with the record date to be determined later.

To oversee the process, the Board has constituted a Rights Issue Committee. This committee will be responsible for determining crucial aspects of the issue, including:

• Quantum of the issue
• Rights entitlement ratio
• Issue price
• Timing of the issue
• Other related matters

New CFO Appointment

In a strategic move to bolster its financial leadership, Sarveshwar Foods has appointed Anand Sharda as its new Chief Financial Officer, effective August 11, 2025. Sharda brings a wealth of experience to the role, with 19 years in accounting and financial management.

Key points about Anand Sharda:

• Qualified Chartered Accountant from the Institute of Chartered Accountants of India
• 19 years of experience in financial expertise
• Previous work experience includes roles at Parag Milkfoods Limited, RBL Bank Limited, DCB Bank Limited, and Publicis Groupe

Financial Results

The Board has also approved the unaudited financial results for the quarter ended June 30, 2025. While specific figures were not provided in the available data, the company stated that these results have been reviewed by the Audit Committee and the Statutory Auditors have expressed an unmodified opinion on them.

Implications for Investors

The rights issue represents a significant opportunity for existing shareholders to increase their stake in the company. It also indicates that Sarveshwar Foods is looking to strengthen its capital base, potentially for expansion or other strategic initiatives.

The appointment of an experienced CFO like Anand Sharda suggests that the company is focusing on enhancing its financial management and strategic planning capabilities. This move could potentially lead to improved financial performance and decision-making in the future.

Investors and market watchers will be keen to see how these developments impact Sarveshwar Foods' future growth trajectory and financial stability.