Patanjali Foods Board Approves Maiden Bonus Share Issue In 2:1 Ratio
Patanjali Foods will give one new fully paid-up equity share of face value of Rs 2 will be given for every two shares held by the eligible shareholders.
Patanjali Foods Ltd. board on Thursday approved maiden issue of bonus shares to over two lakh shareholders.
The board recommended issue of bonus shares in the ratio of 2:1. This means one new fully paid-up equity share of face value of Rs 2 will be given for every two shares held by the eligible shareholders.
"The company will inform the “record date” for determining eligibility of shareholders entitled for issuance of bonus shares, in due course," the Baba Ramdev-founded company said in a stock exchange filing. The bonus issue is subject to approval by shareholders.
Patanjali Foods will credit the bonus shares on or before Sept.16, 2025.
Patanjali Foods stock extended its rally to the seventh day.
Patanjali Foods stock extended its rally to the seventh day. The share price has jumped 11.4% since the company intimated about the board meeting late Monday.
A bonus issue is the distribution of free shares to eligible shareholders. The share price falls in the ratio of the bonus allotment at the ex-date. However, this does not affect the overall value of holdings.
The stock has risen 20% in the last 12 months and 5% on a year-to-date basis. The total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 77, indicating the stock is overbought.
All four analysts tracking Patanjali Foods have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price target of Rs 2,101 implies a potential upside of 13%.
