Patanjali Foods share price locked at 5% lower circuit as OFS floor price set at 19% discount

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₹1,166.65 on Thursday after the company launched an offer for sale (OFS) at a floor price of ₹1,000 per share. This floor price is at a steep discount of around 19% to its Wednesday’s closing price of ₹1,228.05. The yoga guru Baba Ramdev-led Patanjali Ayurved, the promoter entity of Patanjali Foods, proposes to offload 2.53 crore shares in the OFS which will be executed over two days.

The offer opened for non-retail investors on July 13, and for the retail investors, it will open on July 14. At the floor price, Patanjali Ayurved will garner at least ₹2,530 crore from the share sale. Also Read: HCL Technologies share price falls 2% after weak Q1 results; Should you buy, sell or hold the stock? “Seller (Patanjali Ayurved) proposes to sell up to 25,339,640 equity shares of face value of ₹2 each of the company (representing 7 per cent of the total paid-up equity share capital of the company)...," Patanjali Foods said in a regulatory filing on July 12.

In case the option is exercised, the seller may also dilute an additional 72.39 lakh shares, representing 2% of the overall stake. At present, the public shareholding in Patanjali Foods stands at 19.18%, which needs to be increased to a minimum of 25% as per Sebi norms. “The offer is being undertaken by the seller, inter alia, for achieving the minimum public shareholding of the company," the company said.

Also Read: SpiceJet share price rises over 5% on fundraising plans; check details Patanjali Group had acquired bankrupt Ruchi Soya Industries and later renamed the company as Patanjali Foods. Earlier, Patanjali Foods had launched a ₹4,300 crore Follow-on Public Offer (FPO) to increase the public shareholding. Patanjali Foods' total income increased to ₹31,821.45 crore in the