Patanjali Foods on March 17 denied the reports that said the company was preparing to launch another follow-on public offer (FPO) to trim promoter holdings in the company.
“It is clarified that Patanjali Foods Limited is not considering undertaking another further public offering for achieving minimum public shareholding,” said the company in a release.
Earlier some media reports said that Baba Ramdev's company was preparing to launch its share sale in April.
“Investors and shareholders are accordingly advised to not rely on any news article suggesting that the Company is in the process of undertaking an FPO for achieving minimum public shareholding,” the company said.
The development comes at a time when the bourses have said they have put a freeze on the shares held by promoters and promoter entities over the failure to meet the minimum public shareholding norm.
A total of 292.58 million equity shares have been put on freeze by the stock exchanges, the filing said. Patanjali Ayurved is among the 21 promoter and promoter group entities against whom the action has been taken.
Patanjali Foods though assured that action against the company's promoters and the promoters' group will not affect the business.
Promoters of Patanjali Foods hold 80.82 percent of the company. A company needs to bring the promoter shareholding to 75 percent or below within three years of listing, which the FMCG firm has failed to do so.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
