India Today Daily

As OFS begins, Patanjali Foods shares drop 5%; find out why

<p>After the promoter Patanjali Ayurved began a two-day offer for sale (OFS) at a floor price of Rs 1,000, which represented an 18% reduction from Wednesday’s closing price of Rs 1,225 on the BSE, shares of Patanjali Foods reached a lower circuit limit of 5% on Thursday.</p>
<p>Through this OFS, Patanjali Ayurved, the company’s promoter, will be able to sell 2.53 billion shares at the predetermined floor price.<img decoding=”async” class=”alignnone wp-image-73839″ src=”” alt=”” width=”1580″ height=”885″ srcset=” 300w,×84.jpg 150w” sizes=”(max-width: 1580px) 100vw, 1580px” /></p>
<p>The offer will be made available to non-retail investors on July 13 and to retail investors on July 14. The OFS will be carried out over two days.</p>
<p>On July 13, only non-retail investors will be permitted to submit their offers. Non-retail investors have the option to signal throughout the bid process whether they are ready to carry over their unallotted bids to T+1 day in order to get allocations in the retail category’s undersubscribed part.</p>
<p>“Those investors other than retail investors who have placed their bids on T day and have chosen to carry forward their un-allocated bids to T+1 day, shall be allowed to revise their bids on T+1 day as per the SEBI OFS circular,” Patanjali Foods said.</p>
<p>On T+1 day, or July 14, only retail investors will be permitted to submit bids and amend such offers.</p>
<p>Patanjali Ayurved would sell around 2.53 crore equity shares under the OFS, which really constitutes a 7% interest, according to the exchange filing. In the event of an oversubscription, the promoter intends to sell an additional 72.39 lakh shares, or 2%, giving them a total of a 9% ownership.</p>
<p>The business said that IIFL Securities and Jefferies India would serve as the OFS’ brokers. The offer’s floor price of Rs 1,000 per share represents a discount of 18% from the pricing in the open market.</p>
<p>The yoga guru Ramdev-led organization will get around Rs 3,258 crore from the OFS at the basic offer. The offer has around 25% set aside for mutual funds and insurance firms. Other bidders in the non-retail category will have access to the unsold share if there is any undersubscription in this category.</p>
<p>Shares of Patanjali Foods have decreased 12.10% over the last year and 2.4% so far this calendar year. In contrast, the BSE500 index has increased by 21.47 percent over the last year and 7.45 percent throughout the first half of 2023.</p>
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