At 1:43 PM IST on Friday, Sarveshwar Foods Ltd.’s stock was up 1.26% at Rs 9.67 per share. Following the FMCG firm Sarveshwar Foods’ 100% acquisition of Natural Global Foods DMCC, a Dubai-based company, and the transaction, which made Natural Global Foods DMCC, Dubai a fully owned subsidiary of the corporation, the stock price saw a surge.

At its meeting today, Friday, November 29, 2024, the company’s board of directors authorised the acquisition of the remaining 55% stake in Natural Global Foods DMCC, a Dubai-based company, for 3043.64 AED per share, which would result in the acquisition of 165 shares of Natural Global Foods DMCC. Natural Global Foods DMCC, Dubai would become a fully-owned subsidiary of the company following its acquisition.

“This strategic move aims to strengthen the Company’s operational control, streamline decision-making processes in the Middle East market, and foster synergies that will accelerate growth and enhance overall business operations in the region,” said Sarveshwar Foods in a stock exchange filing.

Sarveshwar Foods already held a 45% stake in Natural Global Foods DMCC; the remaining 55% share capital of the company is being purchased from other current owners, and once the deal is completed, it will become a fully owned subsidiary. The deal is being conducted at arm’s length.

“The acquisition is of strategic nature and it will provide International presence and attract investors and strategic partners to bring relevant experience for the growth and expansion of Business,” said Sarveshwar Foods in a regulatory filing.

Green Point Pte. Ltd., a Singaporean subsidiary of Sarveshwar Foods, has recently obtained an order for 12,000 MT of Indian long grain parboiled rice and set an annual sales target of Rs. 2000 million. Sarveshwar Foods Limited said on Tuesday that its fully-owned Singaporean subsidiary, Green Point Pte. Limited, has secured a major contract worth about Rs. 445 million to provide 12,000 MT of quality Indian long-grain parboiled rice. This order is part of the subsidiary’s strategic objective to make over Rs. 2000 million this fiscal year. This order further confirms Sarveshwar Foods’ supremacy in the global rice-based product industry, which is expected to grow from USD 226.36 billion in 2023 to USD 361.41 billion by 2031 due to increased demand for gluten-free replacements.

Sarveshwar Foods Limited (SFL) produces, trades, processes, and sells branded and unbranded basmati and non-basmati rice in both local and international markets. SFL is the first private sector food company in Jammu & Kashmir to be listed on both the NSE and BSE, with the NSE symbol SARVESHWAR and the BSE Scrip Code 543688.