Promoter of Patanjali Foods cancels greenshoe option for ongoing OFS

Ramdev-led Patanjali Ayurveda, the promoter of Patanjali Foods, on Thursday said that it will not utilise the 2 per cent oversubscription option, also known as the green-shoe option.

The company did not provide any specific reasons for this decision.

Initially, Patanjali Ayurved had planned to sell a 7 percent stake in the company through an offer for sale, with an additional 2 percent to be sold in case of oversubscription.

"We wish to intimate the Stock Exchanges of our intention not to exercise the oversubscription option. Accordingly, the total offer size will be the Base Offer Size,” said the company in a stock exchange filling.

The statement also mentioned that 25,33,964 equity shares would be reserved for allocation to retail investors as part of the offer on July 14, 2023, subject to valid bids.

On July 13, the company launched the offer for sale (OFS) with a floor price of Rs 1,000 per share, which represented a discount of approximately 19 percent compared to the previous closing price.

In March, the stock exchange had frozen 292.58 million shares of promoter group entities of Patanjali Foods for failing to meet the minimum public shareholding requirements within the stipulated deadline.

Previously known as Ruchi Soya Industries, Patanjali Foods had faced insolvency proceedings initiated by the National Company Law Tribunal in December 2017.

However, in July 2019, the recovery plan proposed by Patanjali Ayurved for Ruchi Soya was approved by the tribunal. As a result, the company's public shareholding was reduced to 1.10 percent after implementing the resolution plan.

On Thursday, Patanjali Foods' scrip on BSE closed 5% lower at Rs 1,166.65.

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