The largest shareholder in Patanjali Foods plans to sell up to 9% of its shares.
The largest shareholder in Patanjali Foods plans to sell up to 9% of its shares.
Nearly 40% of the corporation is currently owned by Patanjali Ayurved, together with other powerful shareholders known as promoters.
The main shareholder of Patanjali Foods, Patanjali Ayurved, announced on Wednesday that it intends to sell up to 9% of its holdings in the producer of edible oils in order to comply with requirements for minimum public shareholding. Nearly 40% of the corporation is currently owned by Patanjali Ayurved, and together with other powerful investors, or promoters, they control 80.8% of the company, with the general public owning less than 20%. According to the Securities and Exchange Board of India, public shareholders must own at least 25% of listed companies.
Representative Image. Credit: Reuters Photo
According to a filing with the market on Wednesday, Patanjali Ayurved plans to sell up to 7% of its stock in the firm between July 13 and 14, with the option to sell an additional 2%. One thousand rupees per share was chosen as the sale’s floor price.
Ruchi Soya Industries was purchased by Patanjali Ayurved in 2019 and changed its name to Patanjali Foods in 2022. The business has already been under regulatory scrutiny after yoga master Baba Ramdev tried to convince his followers to buy shares of Ruchi Soya during its January 2020 relisting.
