Patanjali Foods promoter withdraws green-shoe option for OFS; stock zooms ~5%

14 Jul 2023 , 12:32 PM

Patanjali Ayurved, the promoter of Patanjali Foods, announced on July 13 that it will not use the 2% oversubscription option (also known as the green shoe option). It made no mention of the reason for the change in decision.

Patanjali Ayurved previously announced that it will sell a 7% stake in the company through an offer for sale. It was also supposed to sell an additional 2% in case of oversubscription.

‘We would like to inform the stock exchanges that we will not be exercising the Oversubscription Option. As a result, the total Offer Size will be the Base Offer Size,’ said Patanjali Ayurved’s promoter. ‘Resultantly, 25,33,964 equity shares would be reserved for allocation to Retail Investors as part of the Offer on July 14, 2023, subject to the receipt of valid bids.’

On July 13, the company launched OFS at a floor price of Rs 1,000 per share, a 19% discount to the previous close of Rs 1,228.05.

As on June 2023, the Promoter and Promoter Group held an 80.8% stake in Patanjali Foods and Patanjali Ayurved held 39.37% stake.

The stock exchanges froze 292.58 million shares of Patanjali Foods promoter group entities in March for failing to meet the minimum public shareholding norm by the deadline.

At around 11.19 AM, Patanjali Foods was trading 5% higher at Rs 1,223.05 per piece, against the previous close of Rs 1,165.10 on NSE.

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