Shares of Patanjali Foods will be in focus on Thursday morning, as stock exchanges have frozen the promoters’ shareholding in the company for failing to meet minimum public shareholding norms. The FMCG firm said the action against its promoters would have no any impact on its financial position, as it continues its "journey of registering robust business and financial performance."
In a filing to BSE, the company said its promoters are fully committed to the mandatory compliance of achieving minimum public shareholding and that they have been discussing various modes best suited for increasing the public shareholding.
"They are confident of achieving mandatory MPS within next few months," Patanjali Foods said.
Patanjali Foods said its promoters’ equity shares are already under lock in as per the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018 till April 2023 -- one year from date of listing i.e. April 8, 2023.
Therefore, the company does not perceive any impact of the action by the stock exchanges. Further, it should be noted that our promoters’ equity shares are not pledged, Patanjali Foods said.
To recall, Patanjali Foods, erstwhile Ruchi Soya Industries, went into corporate insolvency resolution process with effect from December 15, 2017. It was later acquired by Patanjali Group in 2019.
Owing to the allotment of the equity shares made pursuant to the implementation of resolution plan, the aggregate shareholding of the promoter and promoter group of the company jumped to 98.87 per cent of the total issued, paid up and subscribed equity share capital of the Company.
Patanjali was required to bring the public shareholding to 25 per cent within a maximum period of three years from the date of such fall.
The company said its promoters tried taking suitable steps as to achieve the MPS in timely a manner, but could not due to the Covid outbreak and market conditions prevailing at that point of time. Later, the company came out with the further public offer of equity shares aggregating to Rs 4,300 crore in March 2022 and allotted 6,61,53,846 equity shares to public (non-promoter entities) by which the public shareholding increased to 19.18 per cent.
Since, at present, 19.18 per cent shares in the company are held by public shareholders, the company is required to further increase its public shareholding by 5.82 per cent to achieve the MPS.
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