To achieve the minimum public shareholding (MPS) requirement of 25 percent, the top brass of Patanjali Foods will be meeting investors in Dubai, Singapore, the United States, and the United Kingdom soon. Roadshows have been lined up for the same as early as June, said Baba Ramdev in an exclusive interaction with Moneycontrol.
“We aim to dilute 6 percent stake and complete the process by end of June,” he said.
To this, chief executive officer of Patanjali Foods, Sanjeev Asthana added that promoter stake dilution could be a mix of qualified institutional placement and offer for sales, based on investor interest.
Currently, promoter and promoter group hold 80.82 percent stake in the company and public shareholding stands at 19.18 percent. The company had assured compliance after the exchanges had frozen promotors shares in March for not meeting MPS.
At 12 pm, Patanjali Foods' stock was trading flat at Rs 1,015 on the NSE, with volumes of 134,622 shares.
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Q4 performance
For the quarter ended March 2023, Patanjali Foods' net profit rose 12.5 percent year-on-year to Rs 263.7 crore, driven by higher other income and lower finance cost. Revenue from operations came in at Rs 7,873 crore, increasing 18.1 percent over same period last year. The board recommended a dividend of Rs 6 per share.
"We have always wanted to remove the tag of a 'commodity' company from our name. Now, 72 percent of EBITDA is coming from Foods & FMCG business," Baba Ramdev said.
In FY23, Foods & FMCG business contributed 20 percent to the topline and the management wants to take this to 40 percent in the next few years. "Our aim is to grow this segment by 25-30 percent every year," he added.
New launches and margin expansion
Going ahead, the company plans to launch products in categories like millet-based cereals, white Desi ghee, and premium dry fruits. It is also entering the sports nutrition segment, the management said.
By expanding the Food & FMCG business, Patanjali Foods aims to achieve double digit EBITDA margin in the next five years as edible oil segment is a lower margin business.
"10 percent plus EBITDA margin is achievable in the next five years," said Asthana. For FY23, the company's margin came in at 4 percent.
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