Patanjali to shed 7% in foods arm to meet norms
₹2,533.9 crore via an offer-for-sale (OFS) on exchanges. The OFS is aimed to help Patanjali Foods adhere to the minimum public shareholding guidelines of Securities and Exchange Board of India (Sebi). An exchange filing says the OFS will involve the sale of 25.3 million shares at ₹1,000 apiece by Patanjali Ayurved.
The subscription for the OFS will begin on Thursday and end on Friday. Retail investors can place their bids on 14 July. At present, the promoters of Patanjali hold an 80.82% stake in the company, which exceeds the Sebi-directed limit of 75%.
According to the filing, if the OFS is oversubscribed, the promoters have the option to sell an additional 2% stake through the process. If oversubscribed, the aggregate promoter stake sale will be 9%, or 32.58 million shares of the company. Floor price of the proposed OFS represents an 18.46% discount to Patanjali Foods’ closing price of Wednesday on the NSE, which was ₹1,226.4.
Promoter Patanjali Ayurved held 142.5 million shares, or 39.37% stake in Patanjali Foods as of 30 June. The promoter group now owns 292.6 million shares in the company, which has a market capitalization of ₹44,454.78 crore. But the stock has underperformed over the past year, with 16.3% returns against 21% by the Nifty 50.
Patanjali Foods registered a 18.16% growth in Q4FY23 with a net profit to ₹349.38 crore as compared to ₹295.69 crore a year ago during the same quarter. The company managed to sustain its growth momentum in the revenues and posted a growth of 18.15% to ₹7,872.92 crore in the March 2023 quarter as against ₹6,663.72 crore in the March quarter of the previous fiscal. The company’s operating income declined by 19.6% to ₹326.3 crore in the March quarter of FY23 from ₹406.1 crore in
. Read more on livemint.com
