Patanjali Foods Limited (NSEI:PATANJALI), formerly known as Ruchi Soya Industries Ltd, on May 31, 2023 said its promoters plan to sell shares to institutional investors in June through Qualified Institutions Placement (QIP) and Offer for Sale (OFS) for dilution of a 6% stake to meet minimum public shareholding norms of 25%. At present the public shareholding in Patanjali Foods stands at 19.18%, which needs to be increased to a minimum of 25% to meet the minimum public shareholding norms. Under Rule 19A(5) of the Securities Contracts (Regulation) Rules, 1957 mandates a listed entity to have a minimum public shareholding (MPS) of 25%. Baba Ramdev, while speaking with news agencyPTI, said the company is planning to meet the minimum shareholding norms as prescribed by the market regulator SEBI.

"We are planning to meet the minimum shareholding norms as prescribed by the market regulator SEBI, " Baba Ramdev said. The company is targeting to dilute around 6% stake in June through Qualified Institutions Placement (QIP) and Offer for Sale (OFS), Ramdev said. The Patanjali Foods promoter said the company has already started roadshow from May 31, 2023 and there is a great interest from global investors.

"We have already started roadshow from May 31, 2023 and there is a great interest from global investors," Ramdev said. Ramdev assured investors and public shareholders that there would be no impact of Patanjali Foods Limited's (PFL) operation and financial performance and its growth trajectory will remain intact. PFL Chief Executive Officer Sanjeev Asthana said the preferred route for selling the shares would be either by QIP or a combination of QIP and OFS.

When asked about the amount which PFL will raise through dilution of stake, Asthana said it depends on the market condition and interest of investors.