Patanjali Foods stock hits 5% lower circuit limit as OFS kicks off

Shares of Patanjali Foods hit a 5 per cent lower circuit limit in Thursday's trade after promoter Patanjali Ayurved kicked off two-day offer for sale (OFS) at a floor price of Rs 1,000, which was at 18 per cent discount to Wednesday's closing price of Rs 1,225 on BSE.

To meet minimum public shareholding norms, promoters are selling up to 2.53 crore shares or 7 per cent of the total paid-up equity share capital. In the case of oversubscription, the promoters would see another 2 per cent, taking the issue size to up to 3.25 crore shares.

In the first 20 minutes into trading, the OFS received bids for 355 shares from non-retail investors on BSE at an indicative price of Rs 1,000. The stock fell 5 per cent to hit a low of Rs 1,166.65 on the exchange.

Patanjali Ayurved held 14,25,00,000 shares, or 39.37 per cent stake, in Patanjali Foods as on June 30. Overall, the promoter group owned 29,25,76,299 shares, or 80.82 per cent stake, in the company, which is higher than the 75 per cent level that promoters can hold, as per minimum public shareholding norms.

Patanjali Foods shares have fallen 2.4 per cent this calendar so far and 12.10 per cent in the last one year. In comparison, the BSE500 index has gained 7.45 per cent in 2023 so far and 21.47 per cent in the last one year.

The OFS will be undertaken by the seller, inter alia, for achieving the minimum public shareholding. Patanjali Ayurved held 14,25,00,000 shares, or 39.37 per cent stake in Patanjali Foods as on June 30. Overall, the promoter group owned 29,25,76,299 shares, or 80.82 per cent stake in the company, which is higher than the 75 per cent level that promoters can hold in a company as per minimum public shareholding norms.

As per the BSE release, the OFS will take place during trading hours on a separate window of the stock exchanges commencing at 9:15 am and will close on the same date at 3.30 pm (Indian Standard Time).

Only non-retail investors would be allowed to place their bids on July 13. While placing their bids, the non-retail investors may indicate their willingness to carry forward their un-allotted bids to T+1 day for allocation to them in the unsubscribed portion of retail category.

"Those investors other than retail investors who have placed their bids on T day and have chosen to carry forward their un-allocated bids to T+1 day, shall be allowed to revise their bids on T+1 day as per the SEBI OFS circular," Patanjali Foods said.

Only retail investors would be allowed to place their bids and revise their bids on T+1 day i.e. July 14.

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