Patanjali Foods gains on receiving proposal to acquire non-food business from Patanjali Ayurved
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Patanjali Foods is currently trading at Rs. 1584.95, up by 7.15 points or 0.45% from its previous closing of Rs. 1577.80 on the BSE.
The scrip opened at Rs. 1598.40 and has touched a high and low of Rs. 1609.00 and Rs. 1577.00 respectively. So far 15206 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1741.00 on 16-Feb-2024 and a 52 week low of Rs. 893.65 on 02-May-2023.
Last one week high and low of the scrip stood at Rs. 1609.00 and Rs. 1405.30 respectively. The current market cap of the company is Rs. 57414.19 crore.
The promoters holding in the company stood at 73.77%, while Institutions and Non-Institutions held 13.15% and 13.07% respectively.
Patanjali Foods has received a proposal to acquire non-food business from Patanjali Ayurved. The Board of Directors of Patanjali Foods at its meeting held on April 26, 2024, discussed the initial proposal received from Patanjali Ayurved (PAL) for a sale of PAL’s non-food business undertaking to the Company.
The Board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with PAL’s non-food portfolio in any manner on an arm's length basis. It also authorised officials of the Company to carry-out due diligence, appoint professionals, negotiate the terms and conditions of the proposal, and report the findings to the Audit Committee and the Board for further consideration.
To strengthen its product portfolio, the company acquired biscuits business of Patanjali Natural Biscuits for Rs 60.03 crore in May, 2021. The Company also acquired Noodles and Breakfast cereals business for Rs 3.50 crore in June, 2021 and food business in May, 2022 for Rs 690 crore from Patanjali Ayurved.
The proposal received from PAL may offer synergies to the Company’s product portfolio with an array of brands and contribute to the growth in terms of revenue and EBITDA.
Patanjali Foods, erstwhile Ruchi Soya Industries, sells its products under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight.
