Shares of Patanjali Foods, a unit of yoga guru Ramdev-backed Patanjali Ayurved, fell 5% to a low of Rs 912.9 on March 16 after exchanges froze shares held by promoters and promoter entities as they still held a stake of around 80% in the company.

The company said in a filing that up to 292.58 million shares were frozen. Patanjali Ayurved is one of 21 promoters and promoter group entities to be acted upon.

According to the Securities and Exchange Board of India (SEBI), at least 25% of the shares of a listed entity must be held by public shareholders. Patanjali Foods’ stake stood at 19.18% as of the end of the December quarter.

Sanjeev Asthana, CEO of Patanjali Foods, told CNBC-TV18 that the company is confident that it will reach the minimum public float within a few months. He said the dilution would be through a promoter tender offer and a qualified institutional placement.

Shares of Patanjali Foods were down 4.6% at Rs 916.30 on the BSE at 9:58 am. The stock has risen more than 800% over the past three years but is down about 23% this year.

The recent inclusion of the stock in the FTSE Global Index has given investors hope for FII inflows.

For the quarter that ended December 2022, the company posted a 15% year-on-year rise in net profit to Rs 269 crore, while revenue jumped 26% to Rs 7,926 crore.