Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on August 28, 2025
The company is engaged in the business of procurement, storage, milling, sorting, packaging, branding and distribution of Basmati-Non-Basmati rice and other agri products.
• It marked growth in its top and bottom lines for the reported periods.
• The company is marketing its products under brand names like “Sarveshwar”, and “Nimbark”.
• Based on its recent financial data, the issue appears fully priced.
• Well-informed investors may park funds for long term.
ABOUT COMPANY:
Sarveshwar Foods Ltd. (SFL) is engaged in the business of procurement, storage, milling, sorting, packaging, branding and distribution. Its product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, broken rice, brown rice and parboiled rice. Along with the varied variety of conventional Basmati and non-Basmati rice, its product portfolio also includes organic Basmati and Non – Basmati rice including range of other organic products. Company has four Warehouses or storage facilities.
Basmati rice is a premium variety of rice renowned for its flavour, fine texture, distinct aroma, elongation when cooked and which is grown in certain parts of India. Its high value is attributed to the rich soil and climate of the region giving it unique qualities such as strong aroma in both raw and cooked forms. Besides conventional Basmati and Non-Basmati rice, the Company has also forayed into procurement, storage, milling, sorting, packaging, branding and distribution of “Organic” Basmati and Non-Basmati rice. SFL’s “Organic” business also includes organic food products such as dry fruits and nuts, pulses, lentil, tea & coffee, porridge, herbal juices & powders, spices and super foods like chia seeds, flax seeds, quinoa seeds. The Company markets and distributes these organic food products under its brand “Nimbark”.
SFL is selling organic products through this store viz. rice, red rice, brown rice, flours, pulses, nuts & dry fruits, spices & condiments, jaggery & sugar, breakfast cereals, edible oils, saffron, flaxseed, sesame seed. Its business works on Farm to Folk traceability. Its approach from sowing to consuming remains true to its values so that consumers have the finest quality Basmati, grown with the utmost care. Sourcing is done from the original Basmati habitat, where the grain is nurtured by crystal clear Himalayan snowmelt. Each grain is selected carefully by passing it through expert quality benchmarks. The grain is aged and rested in natural conditions to attain the highest levels of uniformity and stability. Milling and packing is done using the advanced technology to keep the natural aroma, taste and texture intact.
The Company has directly backward integration with farming community for organic products. It has formed large farmer groups for various products which are being certified organic by international certifications agencies like Control Union certification, Onecert International. The Company has facilitated and conducted various training programmes for the farmers to educate them the benefits of organic farming on the lands owned by them. It has inhouse facility for checking physical parameters at its plant to ensure the procurement of quality rice paddy leading to higher yield on processing. It also has a dedicated quality assurance department which ensures that products meet customer quality specifications and international certification requirements.
It is present across all price points in the Basmati and Non-Basmati rice markets viz. branded, unbranded. The company has market presence which enables its products reach States/Union Territories in India like Jammu and Kashmir, Delhi, Gujarat, Maharashtra, Punjab and Haryana. In the international markets, its products are sold and distributed in the USA, UAE, Saudi Arabia, Netherlands, Europe, Singapore and Middle East. Its exports are sold under third party labels. Further, it also exports basmati and non-basmati rice (both organic and non-organic) under own brand “Sarveshwar” and “Nimbark”. It has arrangements for distribution of Basmati and Non-Basmati rice with cash and carry outlets like Walmart’s “Best Price” outlets and the Shri Mata Vaishno Devi Shrine Board, a Hindu pilgrimage centre at Jammu.
SFL currently sells rice in India under major brands, such as Sarveshwar Ultra XL, Sarveshwar Unique, Sarveshwar Select. It depends on the strength of its brand name “Sarveshwar” to market and sell product in India and believe that it is essential to its business and reputation. The success of business, in part, depends on ability to continue using the existing trademarks with respect to the “Sarveshwar” name in order to increase presence in the rice industry in India.
The “Sarveshwar” trademark is registered under classes 30, 44, 45 in India and applicable category in Canada, USA and European Union. Further, use of similar marks by other companies, entities and organizations may create confusion in the minds of customers, dealers, distributors and suppliers and affect reputation, which may have an adverse effect on business and results of operations. The company has achieved significant growth in operations and continue to expand market presence across India. Its commitment to quality and traditional values has established it as a trusted name in the premium rice segment. The offer document is silent on its employees’ strength.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 249910469 equity shares of Re.1 each at a fixed price of Rs. 6 per share to mobilize 149.95 cr. The RI opens for subscription on September 02, 2025, and will close on September 16, 2025. The company is offering RI in the ratio of 12 for 47 to its eligible stakeholders as of the record date of August 22, 2025. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 8.15 cr. for this RI process, and from the net proceeds, it will utilize Rs. 130.00 cr. for working capital, and Rs. 11.80 cr. for general corporate purposes.
The RI is self-managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue. The issue has been underwritten and the company has entered into an underwriting agreement, with underwriters.
Post-RI, company’s current paid-up equity capital of Rs. 97.88 cr. will stand enhanced to Rs. 122.87 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 787.24 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit of Rs. 876.87 cr. / Rs. 16.78 cr. (FY24), and Rs. 1141.72 cr. / Rs. 27.14 cr. For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 7.02 cr. on a total income of Rs. 301.71 cr. It marked degrowth in its top and bottom lines for the reported periods.
DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. However, the offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543688 (FV Re. 1).
The scrip last closed on cum-right basis at Rs. 8.00 on August 21, 2025, and opened on an ex-right basis at Rs. 7.72 on August 22, 2025. Since then, it has marked a high/low of Rs. 8.06 / Rs. 7.52. The scrip last closed at Rs. 7.47 as of August 26, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 11.65 / Rs. 5.34. Based on its last traded price of Rs. 7.47, the RI is at a discount of around 19.68%.
The promoters’ holding has been constant at 51.43% for the last two quarters ended with June 30, 2025. The counter is well managed above the RI price to lure investors.
DISCLAIMER NOTE:
My family holds few shares for long term in this company and we are planning to invest in its RI to the extent of our eligibility.
Conclusion / Investment Strategy
SFL is engaged in the business of procurement, storage, milling, sorting, packaging, branding and distribution of Basmati and Non-Basmati rice and other agri products. It marked growth in its top and bottom lines for the reported periods. The company is marketing its products under brand names like “Sarveshwar”, and “Nimbark”. Based on its recent financial data, the issue appears fully priced. The RI is around 19.6% discount to its last traded price. Well-informed investors may park funds for long term.
Review By Dilip Davda on August 28, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
