Key Points of Patanjali Foods Promoter Stake Freeze:
- NSE and BSE have frozen equity shares held by Patanjali Foods promoter groups.
- The freeze is due to the company’s failure to meet public shareholding requirements.
- The freeze will remain in place until the company complies with the minimum public shareholding requirements as per the SEBI regulation.
- 21 entities, including Patanjali Ayurveda Ltd, are affected by the restriction.
- The company underwent a corporate insolvency resolution process in 2017, and the resolution plan was approved in 2019.
- Patanjali Foods Ltd launched a Further Public Offering (FPO) in March 2022 to increase public shareholding to 19.18%.
- The company was required to increase its public shareholding to 25% and received an email from stock exchanges freezing the shareholding of the Promoters and Promoter Group while discussing means and methods for meeting this requirement.
Details of Patanjali Foods Promoter Stake Freeze:
NSE and BSE freeze Patanjali Foods Ltd promoter group shares for not meeting public shareholding requirements
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have announced a freeze on the equity shares held by the promoter groups of Patanjali Foods Ltd. This move comes as the company failed to meet the public shareholding requirements within the given deadline. The freeze will remain in place until the company complies with the minimum public shareholding requirements as per the SEBI regulation.
The restriction will impact 21 entities, including Patanjali Ayurveda Ltd, Patanjali Parivahan Private Ltd, Patanjali Renewable Energy Private Ltd, and Patanjali Agro India Private Ltd.
According to the company, the corporate insolvency resolution process was initiated against Patanjali Foods Ltd (formerly known as Ruchi Soya Industries Ltd) by the National Company Law Tribunal, Mumbai Bench, in 2017. The resolution plan submitted by a consortium led by Patanjali Ayurved Ltd was approved by NCLT on July 24, 2019.
To comply with the public shareholding requirements, the company launched a Further Public Offering (FPO) in March 2022, issuing 6,61,53,846 equity shares of ₹2 each at a premium of ₹648 per share, aggregating to ₹4,300 crore, increasing the public shareholding to 19.18%. However, the company was required to increase its public shareholding to 25%. While the company management was discussing various means and methods for meeting this requirement, it received an email from the stock exchanges freezing the shareholding of the Promoters and Promoter Group.
This move by the stock exchanges has impacted the market value of Patanjali Foods Ltd, and it remains to be seen how the company will respond.
About Patanjali Foods:
Patanjali Foods is an Indian consumer goods company that was founded in 2006 by Baba Ramdev and Acharya Balkrishna. The company produces a wide range of products including food and beverages, personal care, and household items. Patanjali Foods has gained popularity in India due to its emphasis on using natural and ayurvedic ingredients in its products. The company has a strong presence in India and has expanded its operations to other countries.
For More Latest News Click Here
