BackPatanjali Foods promoters to dilute 6% share in June through QIP, FPO: Baba Ramdev
Patanjali Foods Wednesday said its promoters plan to sell shares to institutional investors in June through Qualified Institutions Placement (QIP) and Offer for Sale (OFS) for dilution of a 6% stake to meet minimum public shareholding norms of 25%
PremiumPatanjali Foods Ltd, formerly known as Ruchi Soya Industries Ltd, Wednesday said its promoters plan to sell shares to institutional investors in June through Qualified Institutions Placement (QIP) and Offer for Sale (OFS) for dilution of a 6% stake to meet minimum public shareholding norms of 25%.
At present the public shareholding in Patanjali Foods stands at 19.18%, which needs to be increased to a minimum of 25% to meet the minimum public shareholding norms. Under Rule 19A(5) of the Securities Contracts (Regulation) Rules, 1957 mandates a listed entity to have a minimum public shareholding (MPS) of 25%.
Baba Ramdev, while speaking with news agency PTI, said the company is planning to meet the minimum shareholding norms as prescribed by the market regulator SEBI.
"We are planning to meet the minimum shareholding norms as prescribed by the market regulator SEBI, " Baba Ramdev said.
The company is targeting to dilute around 6% stake in June through Qualified Institutions Placement (QIP) and Offer for Sale (OFS), Ramdev said.
The Patanjali Foods promoter said the company has already started roadshow from today and there is a great interest from global investors.
"We have already started roadshow from Wednesday and there is a great interest from global investors," Ramdev said.
Ramdev assured investors and public shareholders that there would be no impact of Patanjali Foods Ltd's (PFL) operation and financial performance and its growth trajectory will remain intact.
PFL CEO Sanjeev Asthana said the preferred route for selling the shares would be either by QIP or a combination of QIP and OFS. When asked about the amount which PFL will raise through dilution of stake, Asthana said it depends on the market condition and interest of investors.
On Tuesday, Patanjali Foods registered 18.16% growth in Q4FY23 net profit to ₹349.38 crore compared to ₹295.69 crore a year ago same quarter. The company managed to continue to sustain its growth momentum in the revenues as it posted a growth of 18.15% to ₹7,872.92 crore in the March 2023 quarter as against ₹6,663.72 crore a Q4 of the previous fiscal.
However, sequentially, PFL's net profit only rose by 1.72% from a PAT of ₹343.46 crore in Q3FY23, while revenue dipped by 0.7% from ₹7,926.64 crore in December 2022 quarter.
Also, EBITDA declined by 19.6% to ₹326.3 crore in Q4FY23 as against ₹406.1 crore in Q4FY22. Further, EBITDA margins contracted to 4.1% in Q4FY23 compared to 6.1% in Q4FY22.
Patanjali Foods has a market cap of nearly ₹38,000 crore. Its share on Wednesday settled at ₹1,047.85 per scrip on BSE, up 2.56% from the previous close.
Patanjali Foods, erstwhile Ruchi Soya Industries, was acquired in September 2019 by Baba Ramdev-led Patanjali Group through a corporate insolvency resolution process.
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