Patanjali Food drops after bourses freeze promoter shares

Patanjali Foods dropped 4.27% to Rs 919.90 after stock exchanges freeze shares of the company's promoter groups for not complying with the regulator's minimum public shareholding norms.

The National Stock Exchange and the BSE have frozen 29.25 crore shares of Patanjali Foods, representing 80.82% of the equity, held by promoters and group entities, for not complying with the regulator's minimum public shareholding norms within the stipulated deadline.

The freezing will be applicable till compliance with minimum public shareholding requirements as per SEBI regulation.

"The company had to increase its public shareholding from 19.18 per cent to 25 per cent and while management of the company was discussing various means and methods for increasing its public shareholding, in the meantime, the company received an email from the stock exchanges freezing the shareholding of the promoters and promoter group," Patanjali Foods said in a stock exchange notification.

The company clarified that "the stock exchanges action will not have any impact on our financial position as we continue our journey of registering robust business and financial performance."

"We have received a communication from our promoters that they are fully committed to the mandatory compliance of achieving minimum public shareholding and they have been discussing various modes best suited for increasing the public shareholding. They are confident of achieving mandatory MPS within next few months," it added.

Patanjali Foods (formerly known as Ruchi Soya Industries), is a diversified Indian conglomerate with strong focus on Fast Moving Consumer Goods (FMCG) and Fast Moving Health Goods (FMHG) segments.

The company's net profit rose 15% to Rs 269.19 crore on 26.2% increase in revenue from operations to Rs 7,926.64 crore in Q3 FY23 over Q3 FY22.

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