Stock exchanges have frozen the promoter shareholding of Patanjali Foods after the company failed to meet the 25 per cent public shareholding within the stipulated time period.
The promoter stake in the Baba Ramdev-backed company is currently at 80.82 per cent.
“The company had to increase its public shareholding from 19.18 per cent to 25 per cent and while management of the company was discussing various means and methods for increasing its public shareholding, in the meantime, the company received an email from the stock exchanges freezing the shareholding of the promoters and promoter group,” Patanjali Foods said in a stock exchange notification.
In March 2022, Patanjali Foods had issued 66.2 million new shares via a follow on public offering (FPO) to increase the public float.
In 2019, Patanjali Ayurved had acquired Ruchi Soya under the corporate insolvency resolution process and changed the name of the company to Patanjali Foods. Following the CIRP process, the promoter holding in the company had increased to 99 percent.
Sebi rules allow a maximum of three years to bring down promoter holding to at least 75 per cent in such cases.
Legal experts said exchanges will unfreeze the holdings once the company’s promoter comes up with a concrete plan to increase public shareholding.
The post is published through a syndicated feed and attributed to Business Standard