Despite weak market sentiment, NHC Foods jumped 5% to its upper circuit of ₹2.05 in intraday deals on the BSE on Wednesday, 26 August. According to reports from Mint, the stock has been rising for the last 15 consecutive sessions and has nearly doubled over this period. The penny stock under ₹5 has been on a spree of hitting its upper circuit and 52-week highs over the last few sessions. With a market capitalization of ₹156 crore, the stock delivered multibagger returns of 485% over the last five years, while over the last six months, it has surged 153%. The current rally demonstrates the stock's strong momentum despite challenging market conditions.
In a significant development, NHC Foods announced that its board approved the largest allocation of 14 crore convertible warrants to Satyam S Joshi HUF, making it the largest participant in the preferential issue. As reported by Business Standard, this allocation represents 14 crore warrants at ₹2.10 per warrant, aggregating to ₹29.4 crore under the preferential issue. The remaining 11.60 crore warrants (₹24.36 crore) are distributed among 12 other non-promoter entities. Upon full conversion, these warrants would translate into 14 crore equity shares, representing an 11.67% shareholding in the Company. The proposed participation by Satyam S Joshi HUF is the largest allocation under the issue, with this entity receiving the maximum allocation among all participants. The warrants will carry a 1:1 conversion ratio, with each warrant convertible into one equity share of the Company within 18 months from the date of allotment.
The board also approved the allotment of 18,18,79,020 fully paid-up equity shares of face value ₹1 each at a conversion price of ₹1 per equity share to M/s. Emerging Market Opportunities Ltd., after the receipt of notice for partial conversion of 19 FCCBs of principal value aggregating to $19,00,000 from the FCCB holder. According to Mint, consequently, the paid-up equity share capital of the company increased to ₹94,38,06,060. After this conversion, 240 FCCBs of principal amount of $1,000,000 as listed at Afrinex Exchange remain outstanding. The latest development shows that the company has successfully executed the ₹18.18 crore FCCB conversion on August 25, 2026, significantly reducing debt obligations and expanding the equity base. The warrant allotment comes alongside this recent FCCB conversion, further strengthening NHC Foods' capital structure.
Besides the board approvals, NHC Foods announced the appointment of Pradeep Agarwal as the Chief Financial Officer of the company, with effect from September 1, 2026. As reported by Mint, the resignation of Manoj Kumar Sharma as the CFO came into effect since the end of business hours on August 25, 2026, due to personal reasons. The company will make the detailed disclosures relating to the proposed preferential issue later separately. Pradeep Agarwal is a Chartered Accountant with more than 25 years of experience in IT, infrastructure, manufacturing, and banking in fundraising, IPOs, capital markets, financial restructuring, and cost optimisation. The CFO transition comes at a strategic time as the company executes its aggressive capital expansion plans.
According to latest financial data, NHC Foods reported exceptional growth in Q1 FY27 with revenue increasing to ₹370 crore from ₹111 crore in Q1 FY26, registering a 235% year-on-year growth. EBITDA rose to ₹20.9 crore from ₹3.39 crore in Q1 FY26, up 515% YoY, while net profit increased to ₹17 crore from ₹1.66 crore, up 931% YoY. EPS stood at ₹0.22 in Q1 FY27, up 633% from ₹0.03 in Q1 FY26. NHC Foods Limited, incorporated in 1960, is an export-oriented firm based in Mumbai engaged in the processing, trading, and exporting of various agricultural/food products, handling products like spices, pulses, grains, oilseeds, and ready-to-eat foods. The company's TTM revenue reached ₹860 crore compared to ₹601 crore sequentially, showing 43.09% growth.
