Shares of an Indian firm which owns one of the largest oil palm farms and is well-positioned in the fast-growing FMHG category slumped following the announcement of an offer for sale.
On Thursday, Patanjali Foods Ltd shares fell 5% to Rs 1,165.10 on the BSE.
As per company’s NSE filing,The company announced an offer for sale (OFS) to sell upto 9% of promoters shares, or 3.26 crore shares, at a floor price of Rs 1,000 per share, indicating an 18% discount to the Wednesday closing price of Rs 1,228.05. This OFS would allow Patanjali Ayurved, the company’s promoter, to sell 2.53 crore shares at a predetermined floor price.
The OFS will be carried out over two days, with the offer accessible to non-retail investors on July 13 and retail investors on July 14.
The offer’s base size will be 2.5 crore equity shares, representing 7% of total paid-up equity share capital. The seller may offload an additional 72.39 lakh shares, representing 2% of the total ownership.
The OFS will fetch the Patanjali Foods Ltd roughly Rs 3,258 crore at the base offer. The stake sale is being carried out in order to meet the minimum public shareholding requirement of 25%.
Patanjali Foods Ltd is engaged primarily in the business of processing of edible oils, vanaspati, baking fats and soya foods.The company is a leader in the branded edible oil category as well with brands like Nutrela Soyumm, Ruchi Gold,Sunrich.
According to the financials,revenue increased by 30% year on year to Rs 31,524 crore in FY 22-23, Likewise, net profit climbed by 10% to 886 crore.
As per shareholding pattern, promoters own 80.82 percent of the company, while retail investors own 13.43 percent as of FY 22-23.
Written by Omkar Chitnis
