GQG Partners injects Rs 2,400 crore in Patanjali Foods

18 Jul 2023 , 10:30 AM

GQG Partners, a Florida-based investment firm that has bet billions of dollars into crisis-hit Adani Group enterprises, has now invested about Rs 2,400 crore in Baba Ramdev-led FMCG giant Patanjali Foods.

Following this development, Patanjali Foods’ counter surged as much as 1.65%.

NRI Rajiv Jain-led GQG acquired a 5.96% stake in Patanjali’s recent OFS, aggregating approximately 2.15 crore shares. The floor price was Rs 1,000 per share, while non-retail investors were allotted shares for Rs 1,103.80. GQG’s investment would thus be valued at approximately Rs 2,400 crore.

Under the OFS, Patanjali offered a 7% stake for sale, in which 2.28 crore shares were offered to non-retailers. GQG made the bids in the non-retailer shares offered for sale.

The retail portion was subscribed 3 times on Friday, while the non-retail portion received 2 times bids.

GQG was in focus this year in March when it made a daring contra bet on Adani stocks during the height of the Hindenburg controversy. Jain has made at least two further rounds of investments in companies owned by billionaire Gautam Adani after beginning with a $2 billion stake.

The promoter holding in Patanjali has been cut from 80.82% to 73.82% owing to a 7% stake sale via OFS. Therefore, the company has now met the minimum public shareholding requirement of 75%.

At around 10.29 AM, Patanjali Foods was trading 0.60% higher at Rs 1,258.90 apiece, against the previous close of Rs 1,251.45 on NSE.

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