Patanjali Foods launches OFS, promoter to sell 9% stake at floor price of ₹1,000 per share

livemint.com:

offer for sale (OFS) that will allow its top shareholder Patanjali Ayurved to offload 2.53 crore shares of the company – (leading to a nine per cent stake in case of oversubscription), at a floor price of ₹1,000 per share. Patanjali Ayurved is the FMCG major's largest shareholder with a stake of 39.37 per cent.

The promoter and promoter groups collectively hold 80.8 per cent in Patanjali Foods.  The OFS will be executed over two days, with the offer being opened up for non-retail investors on July 13, and for the retail investors on July 14, according to a regulatory filing by Patanjali Foods to the stock exchanges. According to the exchange filing, Patanjali Ayurved will offload about 2.53 crore equity shares under the OFS, which actually represents seven per cent stake, and in the case of oversubscription, the promoter is planning to sell an additional two per cent, leading to a nine per cent stake in total.

"The seller proposes to sell up to 2,53,39,640 equity shares of face value of ₹2 each of the Company (representing seven per cent of the total paid-up equity share capital) on July 13," the company said in its exchange filing. Jefferies India and IIFL Securities will act as the brokers for the OFS, the company noted.

The floor price of the offer, at ₹1,000 per share, will mark a discount of 18 per cent as against the current market price.  The OFS, at the base offer, will fetch the yoga guru Ramdev-led entity around ₹3,258 crore. About 25 per cent of the offer is reserved for mutual funds and insurance companies.

If there is any undersubscription in this category, the unsubscribed portion will be available to other bidders in the non-retail category. On July 12, shares of Patanjali Foods settled 1.32 per cent