Excelsior Correspondent
JAMMU, Mar 16: Patanjali has issued a clarification regarding the recent freezing of promoters’ shareholding in Patanjali Foods Limited, formerly Ruchi Soya Industries Limited, by stock exchanges.
The clarification said the company went into corporate Insolvency Resolution Process (CIRP) in December 2017, and was acquired by Patanjali Group in July 2019.
“The aggregate shareholding of the promoter and promoter group of the company increased to 98.87% of the total issued, paid up and subscribed equity share capital of the company following the acquisition,” it said.
As per SEBI regulations, a listed entity is required to comply with the minimum public shareholding (MPS) requirements as specified in the Securities Contracts (Regulation) Rules, 1957.
The clarification issued by Patanjali said, “given that the public shareholding of the company fell below 25% and 10% on December 18, 2019, MPS in the company was required to be increased pursuant to Rule 19A (5) of SCR Rules.
“The company came out with a further public offer of equity shares in March 2022 and allotted 6, 61, 53, 846 equity shares to the public, increasing the public shareholding to 19.18%. However, the company is required to further increase its public shareholding by 5.82% to achieve the MPS. While the promoters were exploring various ways and means to achieve the MPS, the stock exchanges froze the promoters’ shareholding in the company as per SEBI guidelines.”
The clarification further said that the promoters’ shares are already under lock-in as per SEBI guidelines till April 2023, and there is no adverse impact on the functioning or financial position of the company due to the instant freeze of promoters’ shareholding by the stock exchanges.
“The promoters are fully committed to achieving the mandatory compliance of achieving MPS and are exploring various ways and means to achieve it,” read a statement.
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