Multibagger FMCG stock Krishival Foods rose nearly 1 per cent higher to ₹499.90 apiece on Tuesday, inching close to 52-week high price of ₹508, after the company announced that it has acquired industrial property located at Kolhapur, Maharashtra.
However, the FMCG stock gave up the gains, was trading flat at ₹494.40 on NSE, at 11:47 am.
What’s behind the rally?
In an exchange filing dated November 3, Krishival Foods announced that it has acquired and taken physical possession of an industrial property located at Halkarni Industrial Area, Kolhapur (Maharashtra).
The company further informed that the said property, measuring approximately 8,000 sq. meters of land with 1,770.49 sq. meters of construction, was acquired through a SARFAESI auction conducted by Union Bank of India and physical possession was handed over to the company.
“This acquisition is adjacent to the Company’s existing 5-acre MIDC land in the same area and will be utilized for future expansion of its nuts and food processing operations,” the company said in the filing.
On October 28, the company announced that the board has decided to defer the rights issue due to technical issues, which is expected to be resolved in a month.
“The Board of Directors of the Company (“Board”), have deemed it prudent and in the best interest of the Company to defer the Rights Issue due to certain technical issues, which is expected to be resolved within a month,” the company said in an exchange filing.
The company also said that its board has approved an increase in the authorised share capital from the existing ₹24.5 crore ( ₹10 per share) to ₹30 crore.
Krishival Foods share price overview
Looking at the share price history, the FMCG stock has rewarded not only its long-term investors but short-term investors too. Krishival Foods share price gave whopping multibagger returns of nearly 107 per cent in just six months.
The FMCG stock has more than doubled its long-term investors wealth by surging over 394.15 per cent in five years.
In terms of year-to-date basis, the stock has gained 98 per cent, rising from ₹249.95 to current market level.
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