Patanjali Foods shares gain as board to consider first ever bonus issue

Shares of Patanjali Foods rose over 2% on Tuesday after the Baba Ramdev-led firm said it plans to consider its first ever issue of bonus shares at an upcoming board meeting on July 17. This development is notable as the company, which was acquired by Patanjali Ayurved in 2019 for ₹4,350 crore, aims to bolster shareholder value amidst a challenging market environment. The company had previously raised ₹4,300 crore through a Follow-on Public Offer (FPO) in 2022, primarily utilised to clear existing debts.

Shares of Patanjali Foods showed gain of 2.30% to Rs 1713.95 today against the previous close of Rs 1675.35. Despite this rise, the stock has seen a 7% decline in 2025 and has remained largely stable over the past month. In terms of dividends, the firm has been active, disbursing an interim dividend of ₹8 per share in November 2024 and ₹6 per share in March 2024, alongside earlier dividends in September 2023 and September 2022. These financial moves highlight the company's efforts to maintain investor confidence and provide returns to its shareholders.

The consideration of bonus shares comes as Patanjali Foods continues its strategic realignment following its rebranding from Ruchi Soya in June 2022. By issuing bonus shares, the company may be aiming to enhance liquidity and appeal to a broader range of investors. This step will be closely monitored by market analysts, given the stock's underperformance relative to the broader FMCG sector. The outcome of the board meeting and its implications could significantly influence the company's future market trajectory and shareholder value.

Additionally, the bonus issue is expected to attract more retail investors, potentially boosting the stock's trading volume and market presence. As the company navigates these strategic decisions, it remains committed to enhancing its market position and delivering value to its stakeholders.