Patanjali Foods Ltd. said that the promoter would offload up to 9% of its stake through an offer for sale at a floor price of Rs 1,000 per share.
Patanjali Ayurved Ltd. will sell up to 2,53,39,640 equity shares of the edible-oil maker, accounting for 7% of the total paid-up equity share capital, according to a stock exchange filing issued on Wednesday. The offer translates to a steep 18.36% discount against the current market price, as the scrip closed at Rs 1,225 on the BSE on July 12.
In the case of oversubscription, the company said the promoter was planning to sell an additional 2%, or up to 72.39 lakh shares.
The OFS will open on July 13, and only non-retail investors can bid for the shares. On July 14, the OFS will be available for retail investors and non-retail investors who choose to carry forward their unallotted bids from the first day.
About 25% of the offer is reserved for mutual funds and insurance firms. If the shares in this category are unsubscribed, then this portion will be available to other bidders in the non-retail category.
As of now, the public shareholding in Patanjali Foods stands at 19.18%, which needs to be increased to a minimum of 25% to meet the minimum public shareholding norms—as mandated by market regulator SEBI.
Jefferies India Pvt. and IIFL Securities Ltd. will act as the brokers for the OFS, the company said.
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