Patanjali Foods OFS for non-retail investors oversubscribed on Day 1
Patanjali Ayurved, the promoter entity of Patanjali Foods, witnessed a positive response to its offer to sell shares on Thursday. The portion of shares set aside for non-retail investors was oversubscribed by more than two times.
The purpose of the two-day offer for sale (OFS) is for Patanjali Ayurved to reduce its total stake in Patanjali Foods by approximately 7% to meet the minimum public shareholding requirement. This move allows the company to comply with regulatory guidelines.
On Thursday, Patanjali Ayurved’s offer for sale (OFS) witnessed bids for 1,20,27,936 shares from non-retail investors, with a 100% margin, indicating strong interest in the offering. Additionally, bids for 3,36,04,276 shares were received at nil margin.
The OFS involved the sale of 22.8 million shares exclusively to non-retail investors on Thursday, with retail investors set to participate in the bidding process on Friday. The positive response from non-retail investors suggests a favourable reception to the offering, and the high demand for shares with a 100% margin indicates robust investor confidence in Patanjali Ayurved and its subsidiary, Patanjali Foods.
The bid quantity of 1,20,27,936 shares with 100% margin indicates that investors were willing to pay the total amount upfront to secure their desired shares. Furthermore, bids for 3,36,04,276 shares at nil margin suggest that investors were willing to pay the base price or close to it for a larger number of shares.
This response reflects the market’s enthusiasm for investing in Patanjali Foods and showcases investor confidence in the company’s growth potential and prospects. The retail investors’ participation on Friday is expected to further contribute to the overall response and demand for the shares.
As the bidding process continues and more information becomes available, interested individuals should refer to reliable news sources or official announcements for the latest updates on the Patanjali Ayurved OFS.On the BSE, shares of Patanjali Foods experienced a 5% decline, closing at Rs 1,166.65. The drop in share price comes after the announcement made on Wednesday that Patanjali Ayurved, the promoter entity, plans to sell up to 25.3 million shares of its subsidiary, Patanjali Foods. The objective of this move is to increase the public float of Patanjali Foods in order to comply with listing requirements.
Patanjali Foods, a group company of Patanjali Ayurved, has revealed its intention to enhance the public shareholding in the company by reducing the promoter’s stake. This action aligns with regulatory guidelines that mandate a minimum public float for listed companies.
The decision to sell up to 25.3 million shares signifies Patanjali Ayurved’s commitment to meeting the necessary public float requirements and ensuring compliance. By increasing the number of shares available for public trading, the company aims to enhance liquidity and broaden the ownership base of Patanjali Foods.
The subsequent 5% decline in share price on the BSE may be attributed to market reactions and investor sentiment following the announcement of the share sale. Various factors, including market conditions, investor perceptions, and overall demand for the stock influence share price movements.Patanjali Foods, a company specializing in edible oil and other food products, is undergoing an offer for sale (OFS) process in which its shares are being offloaded. The shares are being offered through the OFS route with a floor price set at Rs 1,000 per share.
The OFS route allows the promoter entity, Patanjali Ayurved, to sell its shares in Patanjali Foods to meet the minimum public shareholding requirement as mandated by listing regulations. The floor price of Rs 1,000 per share signifies the minimum price at which the shares can be sold during the OFS.
Through this process, Patanjali Ayurved aims to increase the public float and diversify the ownership base of Patanjali Foods. By selling shares to the public, the company intends to enhance liquidity in the market and promote wider participation from investors.
The floor price of Rs 1,000 per share determines the minimum value at which investors can bid for the shares during the OFS. It serves as a reference price to ensure fair and transparent transactions.
Investors interested in participating in the OFS of Patanjali Foods should carefully evaluate the terms and conditions provided in the offer document. The floor price and other details of the OFS can be obtained from reliable sources and official announcements from the company or stock exchanges.
It’s important to note that share prices and market dynamics can be subject to fluctuations and investor sentiment. Keeping track of the latest updates and market movements through reputable sources is advisable for interested investors.
