Shares of Patanjali Foods Ltd, formerly known as Ruchi Soya Industries Ltd, were stuck in the lower circuit of 5 percent in trade today after promoter Patanjali Ayurved kicked off two-day offer for sale (OFS) at a floor price of Rs 1,000, which was at 18 percent discount to Wednesday's closing price of Rs 1,225 on the BSE.

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The stock has fallen 2.4 percent so far this year and 12.10 percent in the last one year. Meanwhile, the BSE500 index has gained 7.45 per cent this year so far and 21.47 per cent in the last one year.

The edible oil firm promoter on Wednesday (July 12) said its promoter Patanjali Ayurved Ltd is divesting up to 7 percent stake through an offer for sale (OFS).

Patanjali Ayurved will offload 2.53 crore shares at a floor price of Rs 1,000, which is at an 18.4 percent discount to the last traded price, according to a regulatory filing by Patanjali Foods on Wednesday.

At the floor price, Patanjali Ayurved will garner at least Rs 2,530 crore from the share sale. The OFS will be open on July 13 and 14. Shares of Patanjali Foods closed marginally higher at Rs 1,228.05 apiece at BSE on Wednesday and its market capitalisation stood at Rs 44,454.78 crore.

"Seller (Patanjali Ayurved) proposes to sell up to 25,339,640 equity shares of face value of Rs 2 each of the company (representing 7 percent of the total paid-up equity share capital of the company)...," Patanjali Foods said.

At present, the public shareholding in Patanjali Foods stands at 19.18 percent, which needs to be increased to a minimum of 25 percent as per Sebi norms.

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

In case the option is exercised, the total dilution of the stake will be around 9 percent. "The offer is being undertaken by the seller, inter alia, for achieving the minimum public shareholding of the company," the filing said.

Patanjali Group had acquired bankrupt Ruchi Soya Industries and later renamed the company as Patanjali Foods. Earlier, Patanjali Foods had launched a Rs 4,300 crore Follow-on Public Offer (FPO) to increase the public shareholding.

Patanjali Foods' total income increased to Rs 31,821.45 crore in the last fiscal against Rs 24,284.38 crore in 2021-22. Out of the total revenue, the turnover of the edible oil segment rose to Rs 25,253.33 crore last fiscal from Rs 22,468.64 crore in the previous year.

Food & FMCG segment revenue jumped nearly four-fold to Rs 6,218.08 crore in the 2022-23 fiscal from Rs 1,683.24 crore in the year-ago period.

(Edited by : Pradeep John)

First Published:Jul 12, 2023 11:38 PM IST