Patanjali Foods – Offer for Sale (OFS)

Patanjali Foods Ltd, formerly known as Ruchi Soya Ltd, initiated an Offer for Sale on July 12, as stated in its latest exchange filing. The Offer for Sale presents an opportunity for one of its major promoters, Patanjali Ayurved, to divest its stake in the company. 

The Patanjali Ayurved currently holds the largest stake in Patanjali Foods, amounting to 39.37%. Collectively, the promoter and promoter groups of the company possess a total ownership of 80.8% of the company. 

As per the filling, Patanjali Ayurved intends to sell 2.53 Crore equity shares of the company, with a face value of Rs 2 per share at a floor price of Rs 1000 per share. These shares represent 7% of the total paid-up equity share capital of the company. 

It also stated that if there is an oversubscription, the promoter will sell an additional 72.39 lakh shares, which accounts for 2% of the total shares. In total, the company will end up collectively offloading 32.57 crore shares, which represent 9% of the paid-up share capital. 

At the base offer, the Offer for Sale (OFS) is expected to generate approximately Rs 3,258 crore for the yoga guru Ramdev-led entity. Jefferies India and IIFL Securities will serve as the brokers for the Offer for Sale. 

The company has further clarified that the purpose of this offer for sale is to fulfil the minimum public shareholding requirement of the Company in accordance with the rules set by SEBI. 

The Offer for sale will be executed over two days. For Non-Retail Investors the Offer will take place on July 13, that is today. Only Non-Retail Investors are eligible to submit their bids, specifically today. Whereas, for Retail Investors the Offer will take place on July 14, 2023. 

On July 12, the Patanjali Food share price ended the day at Rs 1228.05 on BSE. The floor price for the offer has been set at Rs 1,000 per share, which results in a discount of approximately 18.5% compared to the closing price on that day. 

As of the time of writing this article, the company’s shares are being traded at Rs 1166.65, reflecting a 5% decrease from the previous day’s closing price of Rs 1228.05. It is important to note that the shares have hit the lower circuit, which means there are currently no buyers ready to purchase the company’s shares. 

Its 52-week high price and low price are Rs 1495 and Rs 851.70. The current market capitalisation of the company is Rs 42232.13 Crore. Furthermore, the shares of the company have generated a modest return of 12% in the last month, whereas 20% in the last three months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.