Patanjali Foods Initiates Offer for Sale (OFS) with Plans to Sell Up to 9% Stake

In an important milestone, prominent Indian consumer products business Patanjali Foods has disclosed plans to start an Offer for Sale (OFS) program.

For many years, Patanjali Foods has been a significant participant in the Indian FMCG (Fast- Moving Consumer Goods) industry. It is known for its extensive line of organic and Ayurvedic goods. Patanjali Foods, run by Baba Ramdev, stated on Wednesday that the promoter will sell up to 9% of the company through an offer for sale (OFS) at a floor price of Rs 1,000, representing an 18.4% discount from the stock’s most recent trading price.

Approximately 2.53 crore equity shares, or 7% of the company, will be sold by Patanjali Ayurveda under the OFS, and in the event of oversubscription, the promoter intends to sell an additional 2%.

According to a document, “The seller proposes to sell up to 2,53,39,640 equity shares of the Company with a face value of Rs 2 each (representing 7% of the total paid-up equity share capital) on July 13.”

Only non-retail investors may place bids for the shares when the OFS opens on July 13, also known as the T-day. Retail investors and non-retail investors who opt to carry forward their unused bids from T day can access the OFS on July 14, which is the T+1 day.

The offer has a portion set aside for insurance and mutual fund companies of about 25%. Other bidders in the non-retail category will have access to the unsold share if there is any undersubscription in this category. The offer’s brokers are Jefferies India and IIFL Securities.

The company's shares on the NSE finished 0.99% higher on Wednesday at Rs 1,224 a share.