Bourses freeze promoter shares in Patanjali Foods

Mumbai: Stock exchanges have frozen 292.58 million 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.

In an exchange filing on Wednesday, the company said it had received emails dated March 14 from the BSE and NSE regarding freezing shares of 21 promoter entities. Patanjali Ayurved, the single-largest promoter shareholder with 39.4% stake, and Acharya Balkrishna are among the promoters whose holdings have been frozen.

As per Sebi norms, public shareholders must hold a minimum of 25% stake in a listed company. As on December 31, 2022, public shareholders held 19.18% stake in Patanjali Foods.

The freeze is applicable till compliance of minimum public shareholding requirements, said Patanjali.

In July 2019, Patanjali Ayurveda acquired Ruchi Soya Industries through a resolution plan approved by the National Company Law Tribunal. Following the implementation of the resolution plan, the public shareholding in the company shrank to 1.10%. The company was later renamed Patanjali Foods.

In March 2022, Patanjali Foods launched a follow-on public offer and issued 66.2 million shares. After the share sale, the public shareholding increased to 19.18%.

"The company had to increase its public shareholding from 19.18% to 25%, 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," said the exchange disclosure.

Shares of Patanjali Foods, which have declined 19% so far this year, ended 1.04% higher at ₹960.90 on Wednesday.