Shares of Patanjali Foods Ltd. gained on Friday after the company said it would not exercise oversubscription on the offer for sale of its 2.5 crore equity shares.
The stock will be sold at a face value of Rs 2 and represents 7% of the total paid-up share capital.
The company had intimated a provision for the unallotted bids, which would be carried forward on July 14 by retail and non-retail investors for approximately 7.2 lakh shares, representing 2% of the total paid-up capital.
The company has reserved 25,33,964 shares for allocation to retail investors, at a price of Rs 1,000 apiece, according to an exchange filing.
Shares of Patanjali Foods rose 5% intraday to trade flat as of 10:51 a.m. This compares to a 0.24% advance in the S&P BSE Sensex.
Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 66.24, indicating that the stock may be overbought.
All three analysts tracking the company maintain a ‘buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 14.80%.
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