Stock exchanges freeze Patanjali Food's promoter shares; 'move not to hit functioning,' says company
It is reportedly said that the promoters were trying to take suitable steps to achieve the MPS in a timely manner and owing to the Covid pandemic and market conditions prevailing at that point of time.
FollowIn a recent development, stock exchanges NSE and BSE have freezed shares of promoters of Baba Ramdev-led Patanjali group firm Patanjali Foods. However, the company said the decision will not have any impact on its functioning.
On Thursday, Patanjali Foods Ltd (PFL), erstwhile Ruchi Soya Industries said the freezing of its promoters' shareholding in the company "will not have any impact" on its financial position and functioning of the company.
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The PFL informed that leading bourses BSE and NSE had frozen shares of its 21 promoter entities, including Patanjali Ayurved for failing to meet minimum public shareholding norms.
Rule 19A(5) of the Securities Contracts (Regulation) Rules, 1957 mandates a listed entity to have a minimum public shareholding (MPS) of 25 percent.
"We have received a communication from our promoters that they are fully committed to the mandatory compliance of achieving minimum public shareholding. They have been discussing various modes best suited for increasing public shareholding. They are confident of achieving mandatory MPS within the next few months," the PFL said in a filing.
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It is reportedly said that the promoters were trying to take suitable steps to achieve the MPS in a timely manner and owing to the Covid pandemic and market conditions prevailing at that point of time.
The PFL, however, came out with a Follow-n Public Offering (FPO) in March, 2022, and increased MPS to 19.18 percent by allotting 6.61 crore equity shares of Rs 2 each at a premium of Rs 648.
Presently, as many as 19.18 percent of shares in the company are held by public shareholders. This says the company is required to further increase its public shareholding by 5.82 percent to achieve the MPS.
