Sarveshwar Foods, an FMCG penny stock trading below ₹10, announced a board-approved proposal to increase its authorised capital from ₹120 crore to ₹160 crore, pending member approval. The company’s share price was ₹7.09 on NSE, down 1.25% in Wednesday’s session. Despite a 20% drop in 2025, the stock has delivered a 428% gain over five years and recently gained 13% in two weeks. The company produces and markets basmati and non-basmati rice and underwent a stock split and bonus share issuance in 2023.
Sarveshwar Foods, an FMCG company trading as a penny stock below ₹10, has announced a significant move to increase its authorised capital from ₹120 crore to ₹160 crore. This decision was approved by the company’s board and is now subject to approval by its members.
As of Wednesday trading on the National Stock Exchange (NSE), Sarveshwar Foods’ share price stood at ₹7.09, reflecting a 1.25% decline following the announcement. Despite the recent dip, the stock has shown resilience, delivering a 13% gain over the past two weeks.
Authorised capital is the maximum amount of share capital that a company can legally issue to shareholders, as defined in its Memorandum of Association. Increasing this limit provides Sarveshwar Foods with more flexibility to raise funds in the future and strengthen its financial position.
Over the past year, Sarveshwar Foods shares have experienced volatility, dropping approximately 23%, and in 2025, the stock fell over 20%. However, long-term investors have been rewarded, as the stock has soared more than 428% over the last five years, highlighting the company’s growth potential.
In September 2023, Sarveshwar Foods undertook notable corporate actions by splitting its stock in a 10:1 ratio, followed by issuing bonus shares at a 2:1 ratio. These moves increased liquidity and shareholder value.
The company operates in the production, processing, trading, and marketing of both branded and unbranded basmati and non-basmati rice for domestic and international markets. It holds certification from the US Food and Drug Administration (USFDA), underlining its commitment to quality standards.
As Sarveshwar Foods looks to expand its capital base, investors will closely monitor how these developments impact the company’s growth trajectory and stock performance in the coming months.
