No 'negative impact' after promoter shareholding freeze: Patanjali Foods

Company backed by yoga guru Baba Ramdev failed to meet Sebi's public shareholding rule within deadline

Stock exchanges freezing promoter shareholding in Patanjali Foods has not affected the company’s functioning, said the firm in a press statement on Thursday.

“We do not foresee any adverse or negative impact on the financials position of the Company owing to the instant freeze of Promoters’ shareholding by the stock exchanges,” it said.

The statement was issued after Patanjali Foods' promoters—yoga guru Baba Ramdev is among them—failed to meet the 25 per cent public shareholding within the stipulated time period.

The promoter stake in the company is at 80.82 per cent. The Securities and Exchange Board’s rules allow a maximum of three years to bring down promoter holding to at least 75 per cent in such cases.

“The promoters are fully committed to the mandatory compliance of achieving MPS (minimum public shareholding ) and are exploring various ways and means to achieve the MPS and simultaneously ensuring that interest of the public shareholders is appropriately protected,” Patanjali Foods said in an exchange filing.

Patanjali, in March 2022,  issued 66.2 million new shares via a follow on public offering (FPO) to increase public shareholding.