Patanjali IPOs Announced: Yoga Guru, Baba Ramdev on Friday announced plans for an initial public offering (IPO) for five Patanjali group companies over the next five years. “We are preparing to list five Patanjali group companies by making four IPOs over the next five years,” the company said in a statement.
In the coming years, the company will launch four IPOs: Patanjali Ayurved, Patanjali Wellness and Patanjali Medicine and Patanjali Lifestyle. Baba Ramdev also said that the company plans to have at least 5-7 listed companies from the group. Currently, the group turnover of Patanjali is Rs 40,000 crore. “We are confident it will be Rs 1 lakh crore for the next five years,” said Ramdev. The company aims to achieve a market share of Rs 5 lakh crore with these IPOs.
Baba Ramdev also said that Patanjali will provide employment for 5 lakh crore in the coming days. The company also plans to open 1 lakh Patanjali Wellness stores.
At present, Patanjali Foods is the only group company that is listed on the stock exchange. However, the IPO of this company did not come under the leadership of Ramdev. This company, listed as Ruchi Soya, was bought by Patanjali Ayurved in 2019 for Rs 4,350 crore under a resolution process. Baba Ramdev has updated that his net worth is close to Rs 50,000 crore. The company is already listed on the BSE and NSE stock exchanges.
Ruchi Soya sells its products under brands such as Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight. Ruchi Soya is mainly engaged in the processing of oilseeds, the refining of crude edible oil for use as a cooking oil and the production of soy products and value-added products.
Earlier this year, Patanjali Ayurved, owned by Baba Ramdev, last month sold its food retail business to group company Ruchi Soya Industries Ltd for Rs 690 crore. Through its follow-up offering (FPO), Ruchi Soya collected Rs 4,300 crore to settle its bank and long-term loans.
After that, the promoters’ stake was reduced to 80.82 percent and the public share to 19.18 percent.
According to the standards of the Securities and Exchange Board of India (SEBI), the company must reduce the promoters’ stake in order to reach the minimum public shareholding of 25 percent. Patanjali has about three years to reduce the promoters’ stake to 75 percent.
FPO is an additional offer of stock sale of a company while an IPO or IPO is the first sale of shares.
In June, edible oil producer Ruchi Soya announced it was rebranding itself as Patanjali Foods Ltd. Patanjali Foods share price was trading 0.5 percent higher on Thursday at Rs 1,349 apiece on BSE. The stock price has risen 20 percent in the past month and 30 percent in the past six months.
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