Patanjali Ayurved, promoter of Patanjali Foods, said on July 13 that it will not utilise the 2 percent oversubscription option (also called greenshoe option). It did not mention the reason behind the change of mind.
Earlier, Patanjali Ayurved had announced it will be selling 7 percent stake in the company via an offer for sale. It was also supposed to sell another 2 percent in case there was oversubscription.
“We wish to intimate the Stock Exchanges of our intention not to exercise the Oversubscription Option. Accordingly, the total Offer size will be the Base Offer Size,” the promoter of the company Patanjali Ayurved said. “Consequently, 25,33,964 equity shares would be reserved for allocation to Retail Investors, subject to receipt of valid bids, as part of the Offer on July 14, 2023.”
The company on July 13 launched OFS at a floor price of Rs 1,000 apiece, which was at a discount of around 19 percent to the previous close of Rs 1,228.05.
As of June end of 2023, the Promoter and Promoter Group held 80.8 percent stake in Patanjali Foods, and Patanjali Ayurved owned 39.37 percent stake.
In March, the stock exchanges had frozen 292.58 million shares of promoter group entities of Patanjali Foods for not meeting the minimum public shareholding norm within the stipulated deadline.
Patanjali Foods, previously called Ruchi Soya Industries, faced insolvency proceedings initiated by the National Company Law Tribunal in December 2017. Later, in July 2019, the tribunal approved Patanjali Ayurved's recovery plan for Ruchi Soya. As a result, the company's public shareholding was reduced to 1.10 percent after implementing the resolution plan.
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