On July 13, 2023, Patanjali Foods shares hit a 5% lower circuit limit at Rs 1,166.65 as it launched an offer for sale (OFS) at a floor price of Rs 1,000 per share, at a discount of 19% to the previous close of Rs 1,228.05. This OFS will allow its promoter Patanjali Ayurved to divest 2.53 crore shares at the fixed floor price.

The OFS will be implemented over two days, with the offer opened up for non-retail investors on July 13 and retail investors on July 14.

The base size will be ‘25,339,640 equity shares’, i.e., 7% of the total paid-up equity share capital. The seller offloads 72.39 lakh shares, with 2% of the overall stake.
The OFS, at the base offer, will make the yoga guru Ramdev-led entity Rs 3,258 crore. The stake sale will comply with the minimum public shareholding norm of 25%.

As of June end, the Promoter and Promoter Group held an 80.8% stake in Patanjali Foods, and Patanjali Ayurved owned 39.37% stake.

In March, the stock exchanges had frozen 292.58 million shares of Patanjali Foods promoters for not completing the minimum public shareholding norm within the specified deadline.

Patanjali Foods, earlier called Ruchi Soya Industries, faced insolvency records started by the National Company Law Tribunal in December 2017. Later, in July 2019, NCLT approved Patanjali Ayurved’s retrieval plan for Ruchi Soya, with public shareholding reduced to 1.10% after executing the resolution plan.

The company has said it continues to lead in the oil business with strong kinds like Ruchi Gold, Mahakosh and Sunrich. Its focuses on expanding the section and improving margins through a model that aligns with the Atmanirbhar Bharat campaign of the National Mission on Edible Oil Palm.