Patanjali Ayurved to sell 7% stake in its group firm Patanjali Foods

Patanjali Ayurved Ltd led by Baba Ramdev will sell up to Rs 2.53 crore shares in the group company Patanjali Foods Ltd on the exchanges in a bid to increase the public flotation to meet the listing requirement.

Patanjali Foods shares, which are converted into edible oil and other food products, will be offloaded through Offer For Sale (OFS) route.

The minimum price has been set at 1,000 rupees per share of the shares for the offer, which will open on July 13-14, according to a regulatory filing by Patanjali Foods on Wednesday.

At the base price, Patanjali Ayurved – the promoter of Patanjali Foods – will get at least Rs 2,530 crore from the sale of shares.

Shares of Patanjali Foods closed slightly higher at Rs 1,228.05 per share on BSE on Wednesday and its market capitalization stood at Rs 44,454.78 crore.

Patanjali Foods said, “The seller (Patanjali Ayurved) is proposing to sell up to 25,339,640 shares of stock with a face value of Rs 2 each (representing 7 per cent of the total paid-up share capital of the company)…”.

Presently, the public shareholding of Patanjali Foods is 19.18 percent, which should be increased to at least 25 percent as per Sebi standards.

There is also an option for Patanjali Ayurved to sell up to an additional 7,239,897 shares, representing 2 percent of the company’s total paid-up share capital, Patanjali Foods said.

If the option is exercised, the total share dilution will be approximately 9 percent.

“The offer is made by the seller, among other things, to achieve a minimum public contribution to the company,” the lawsuit states.

The bankrupt Ruchi Soya Industries was taken over by Patanjali Group and later renamed the company as Patanjali Foods.

Earlier, Patanjali Foods launched a Follow-up Public Offering (FPO) of Rs 4,300 crore to raise public shareholding.

The total income of Patanjali Foods rose to Rs. 31,821.45 crore in the last financial year as against Rs. 24,284.38 crore in 2021-2022.

Out of total revenue, the turnover of the edible oil segment increased to Rs. 25,253.33 crore in the last financial year from Rs. 22,468.64 crore in the previous year.

Revenue from the food and FMCG segment quadrupled to Rs.6,218.08 crore in the 2022-23 financial year from Rs.1,683.24 crore in the same period last year.