Patanjali Foods, led by Baba Ramdev, is once again in the spotlight in the stock market. The company's shares have seen a significant surge in the past 7 trading days. On Friday, July 18th, despite a weak market, Patanjali Foods' share price rose by more than 2% to reach an intraday high of ₹1,944.90. This marked the fifth consecutive day of gains for the stock.
In just one week, the share has jumped by 17%. This surge comes after the company made a major announcement for investors, recommending bonus shares in the ratio of 2:1.
What does a 2:1 bonus mean?
The board of Patanjali Foods proposed a 2:1 bonus share issue in its meeting held on July 17, 2025. This means that investors holding 1 share will receive 2 additional shares free of charge. So, those who own 100 shares will receive 200 more. This bonus will be issued from the company's reserves and will require shareholder approval. The record date, the date until which shareholders must hold the shares to be eligible for the bonus, will be announced soon.
Company's Strong FMCG Portfolio
Previously, Patanjali Foods was primarily limited to the edible oil business. It was then known as Ruchi Soya. However, after acquiring several FMCG brands from Patanjali Ayurveda, the company has significantly expanded its business scope.
Now, it also manufactures biscuits, noodles, nutraceuticals, ghee, honey, oats, and various nutrition-related products. This diversification allows the company to generate revenue from various segments and maintain a more stable business.
Still a Strong Hold in the Oil Business
Patanjali Foods remains the second largest player in India's branded cooking oil market. It holds the number one position in palm oil and the second position in soy oil. The company's market share in the soy protein market is between 35% and 40%, making it the market leader in this segment.
Fourth Position in Biscuits and Oral Care
The company is also rapidly growing in other FMCG categories. Patanjali Foods has now reached the fourth position in the Indian biscuit and oral care markets. This clearly indicates that the company is no longer just an Ayurveda or oils company, but has become a multi-segment FMCG giant.
Company's Foundation and Expansion
Patanjali Foods was founded in 1986, when it was known as Ruchi Soya. In 2019, it was acquired by the Patanjali Group, and since then, the company has undergone significant transformation. New products have been added, production has been increased, and attention has been paid to marketing.
The company is now operating with production units in several states across the country and is preparing to expand its footprint in international markets as well.
Bonus Shares Increase Investor Confidence
A major reason for the surge in the company's share price is investor confidence. Bonus shares are not just a reward but also a sign that the company has good reserves and income, which it wants to share with its shareholders.
Waiting for Record Date and Approval
Although the bonus share proposal has currently been approved at the board level, it still requires shareholder approval. Also, the record date will be announced soon. Only when these two processes are completed will investors be able to receive the bonus shares.
Strong Performance in the Stock Market
Patanjali Foods' share has given good returns to investors in the past year. While volatility has persisted in the market, this share has maintained its stability and reliability. Now that it is approaching its all-time high of ₹2,030, the market's eyes are once again fixed on it.
Improvement in Profit and Sales
The company's results were also good in the last quarter. Both sales and profits have improved. This is giving investors confidence that the company's fundamentals are b and that it has become a long-term player.
