Sarveshwar Foods announces rights issue to fuel growth, strengthen finances

Sarveshwar Foods Limited has announced a rights issue of up to 24,99,10,469 equity shares at an issue price of ₹6 per share, including a ₹5 share premium. This totals ₹14,994.63 lakhs and is offered to existing shareholders in a ratio of 12 rights equity shares for every 47 fully paid-up equity shares held as of the August 22, 2025, record date. The issue price is five times the face value of the equity shares.

The company aims to utilize approximately ₹130 crores from this ₹150 crore rights issue to deleverage its balance sheet and support working capital for projected turnover growth over the next two to three years. This initiative is crucial for supporting a business model characterized by a 170-180 day working capital cycle and a projected CAGR of over 30%.

These financial moves follow strong Q1 FY26 performance, with total income at ₹301 crores (29% year-on-year growth), EBITDA at ₹17.13 crores (36% year-on-year growth), and net profit at ₹7.02 crores (120% year-on-year jump). The company's organic food products under the Nimbark brand are significant contributors to these improved margins and overall profitability.