Baba Ramdev-Backed Patanjali to Float 4 IPOs Over Next 5 Years; Know Details Here

Patanjali IPOs Announced: Yoga Guru, Baba Ramdev on Friday announced the initial public offering (IPO) plans for five Patanjali group companies over the next five years. “We are preparing to get listed five Patanjali group companies by floating four IPOs in the next five years,” a company statement read.

In the coming few 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, Patanjali’s group turnover is at Rs 40,000 crore. “We are confident that it will be Rs 1 lakh crore in the next five years,” Ramdev said. The company aims to reach a market share of Rs 5 lakh crore with these IPOs.

Currently, Patanjali Foods is the only group company that is listed on the stock market. 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 updated that its net worth is near Rs 50,000 crore. The company is already listed on the stock exchanges BSE and NSE.

Ruchi Soya sells its products under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star, and Ruchi Sunlight. Ruchi Soya primarily operates in the business of processing of oilseeds, refining of crude edible oil for use as cooking oil, and manufacturing of soya products and value-added products.

Earlier this year, Baba Ramdev-owned Patanjali Ayurved divested its food retail business to group company Ruchi Soya Industries Ltd last month for Rs 690 crore. Through its follow-on public offer (FPO), Ruchi Soya collected Rs 4,300 crore, to clear its bank and long-term borrowings.

After this, the promoters’ stake was reduced to 80.82 per cent, and the public shareholding stood at 19.18 per cent.

As per the Securities and Exchange Board of India (SEBI) norms, the company needs to bring down the promoters’ stake to achieve the minimum public shareholding of 25 per cent. Patanjali has around three years to pare promoters’ stake to 75 per cent.

FPO is an additional share sale offer of a company, while an IPO or initial public offering is the first sale of shares.

In June, the edible oil producer Ruchi Soya announced that it renamed itself Patanjali Foods Ltd. Patanjali Foods’ share price was trading 0.5 per cent up at Rs 1,349 apiece on BSE on Thursday. In the past one month the stock price has surged 20 per cent, and 30 per cent in the last six months.