Patanjali Foods’ retail portion of OFS subscribed fully; stock surges ~5%

14 Jul 2023 , 03:16 PM

On Friday, the retail portion of an OFS (offer for sale) by Baba Ramdev-led FMCG behemoth Patanjali Foods was fully subscribed. In Friday’s BSE trade, the stock also hit a 5% upper circuit at Rs 1,225, despite the fact that shares in the OFS are sold at a discounted floor price of Rs 1,000.

The cut-off price has been set at Rs 1103.80 based on bids in the non-retail category. Retail investors, defined as those investing less than Rs 2 lakh, can thus apply for a maximum of 181 shares.

On Thursday, the non-retail portion was subscribed 200%.

The OFS was to take place for a period of two days, with non-retail investors receiving the offer on July 13 and retail investors receiving it on July 14.

According to the company’s filing with the exchanges on Wednesday, it was planning to sell a 7% stake in Patanjali Foods at a floor price of Rs 1,000 per share. It also said that in case of oversubscription, the promoter will pare an extra 2% stake.

However, later on, the promoter company said that it will not utilize the 2% green shoe option (oversubscription option).

At around 3.12 PM, Patanjali Foods was trading 5% higher at Rs 1,223.35 per piece, against Rs 1.165.10 on NSE.

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