Patanjali Foods Limited, led by Baba Ramdev, is on the cusp of a significant decision. The company informed the stock exchange on Monday that a proposal for bonus shares will be considered at a board meeting scheduled for July 17, 2025. If the board approves the proposal, it will be the first time in the company's history that it will be issuing bonus shares to its investors.
Share Movement After Announcement
Following the announcement of the potential bonus shares, investor interest in the stock increased on Tuesday. By around 2:10 PM, Patanjali Foods' shares had risen by 2.07 percent, reaching ₹1710. The stock also saw an intraday surge of up to 2.5 percent, reflecting a b market reaction to the news.
How the Company's Face Changed Over Time
Patanjali Foods was formerly known as Ruchi Soya. In 2019, the company was undergoing an insolvency process when Patanjali Ayurved acquired it for ₹4350 crore. Since then, the company has rapidly strengthened its financial structure and re-entered the market with a new identity.
In 2022, the company launched a Follow-on Public Offer (FPO) under the name Ruchi Soya, raising approximately ₹4300 crore. A significant portion of this fund was used to pay off old debts. Following the FPO, the company changed its name to Patanjali Foods and began trading on the stock exchange under the new name from June 24, 2022.
Strategy Behind Bonus Shares
In the exchange filing, the company stated that the proposal to issue bonus shares is included in the board of directors' meeting on July 17. However, this proposal will only be implemented after shareholders' approval. Bonus shares are typically issued by companies when they want to provide additional benefits to their shareholders but do not want to pay cash dividends. This increases the number of shares, which also improves the stock's liquidity.
Market Capitalization and Listing Platform
Patanjali Foods' current market capitalization on the BSE is approximately ₹61,988 crore. The company's shares are listed on both the BSE and NSE, and its business, ranging from food processing to consumer goods, is spread throughout the country.
Increased Investor Excitement Due to Bonus Expectations
There is a special buzz in the stock market regarding Patanjali Foods concerning the bonus share proposal. Investors are hopeful that if the proposal is passed, it will not only increase the stock's liquidity but also prove to be a significant reward for long-term holders.
Company Expansion and Future Plans
Patanjali Foods' portfolio includes edible oils, packaged foods, nutrition products, and personal care products. The company is also rapidly expanding its distribution network and is working on plans to increase its influence in Tier 2 and Tier 3 cities of India.
From Acquisition to Bonus: A New Turn in the Journey
Ruchi Soya's fortunes changed dramatically after its acquisition by Patanjali Ayurved. Where the company was once on the verge of bankruptcy, it is now counted among the top FMCG companies in the country. Now, if the bonus share is announced, it could add a new chapter to the company's journey.
July 17th Meeting is Crucial Regarding Bonus
Now, everyone's eyes are on the board meeting scheduled for July 17th. Will the decision on bonus shares actually be taken? Will the stock pick up pace again? There are many questions in the minds of investors, the answers to which may come from this very meeting.
