Baba Ramdev to Launch IPO of Patanjali’s Brands Soon, State Reports

Representative image. Reuters

Baba Ramdev said he may soon launch an initial public offering (IPO) of four companies under the Patanjali brand. These companies, which will be listed on the stock exchange within five years, are Patanjali Ayurved, Patanjali Lifestyle, Patanjali Wellness and Patanjali Medicine. In an interview with Zee Business, the yoga guru also said his company plans to sell the promoters’ 6% stake in Patanjali Foods, formerly known as Ruchi Soya Industries. “We will bring plans to reduce the stake by November. We are in talks with national brokerage firm Motilal Oswal in this regard,” Baba Ramdev told Zee Business.

The sale of the stake to Patanjali will take place due to government standards which do not allow more than 75% ownership by the promoter in a listed company. The promoters own more than 80% stake in Patanjali Foods.

On the IPO side, other brands are hoping to follow in the footsteps of Patanjali Foods which has become profitable over the years. Shares of Patanjali Foods have reached the market capitalization of Rs 50,000 crore and remain a cash cow for its investors.

The company also announced a dividend of Rs 5 per share for all its shareholders, with September 26 as the record date.

Patanjali Foods aims in particular to conquer the edible oil market. Fast Moving Consumer Goods (FMCG) has seen its shares grow exponentially since 2019. Patanjali Foods’ share price rose from Rs 21 to Rs 1,393 on the Bombay Stock Exchange. On September 12, Monday, the stock hit a high of Rs 1,415, its highest level in 52 weeks. The shares were trading at Rs 1,388.05 as of 11:51 a.m.

In the financial year 2022, Patanjali Foods recorded revenue of Rs. 24,205 crore, marking a growth of 48% over the previous financial year.

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