Baba Ramdev-led Patanjali Ayurved’s sale of shares of Patanjali Foods surpassed expectations as it received oversubscription of more than two times at the end of the two-day offer on Friday.
According to the most recent data available on the BSE, the non-retail segment garnered subscriptions that were more than double, while the retail category experienced over triple the subscription rate.
The two-day Offer For Sale (OFS) was launched by Patanjali Ayurved to divest 7% stake in Patanjali Foods to boost public float and meet listing requirements, the promoter entity, with the intention of reducing its total stake in Patanjali Foods by around 7%. This strategic move is driven by the need to meet the minimum public shareholding requirement.
On Friday, the offer garnered bids for 76,34,567 shares from retail investors, surpassing the available 25,33,964 shares on offer. This indicates a threefold subscription, highlighting the strong interest and demand from retail investors.
On Thursday, non-retail investors were presented with 2.28 crore shares, and the total bids received for these shares amounted to over 4.56 crore, indicating a subscription rate of two times.
The offer was available to non-retail investors on Thursday and to retail investors on Friday, respectively.
Patanjali Foods, a company specializing in edible oil and other food products, recently sold its shares at a minimum price of INR 1,000 per share. The total number of shares offered was 2,53,39,640.
On Friday, the shares of the company witnessed a 5% increase, reaching a closing price of INR 1,224.95 per share on the BSE.
Currently, the public shareholding in Patanjali Foods stands at 19.18%, and it is required to be raised to at least 25% in accordance with the norms set by the Securities and Exchange Board of India (SEBI).
Earlier this week, Patanjali Foods announced that its promoter, Patanjali Ayurved, intends to sell a maximum of 2.53 crore shares of the company. The objective behind this move is to enhance the public float of the company.
Patanjali Ayurved had the opportunity to sell additional shares through the Offer for Sale (OFS) mechanism, but ultimately chose not to pursue that option.
Patanjali Foods recently introduced a Follow-on Public Offer (FPO) worth INR 4,300 crore with the aim of expanding its public shareholding.
Patanjali Group had acquired bankrupt Ruchi Soya Industries and later renamed the company as Patanjali Foods.
