Patanjali Foods Limited has declared its first-ever bonus share issue after a board meeting held on Thursday, July 17.
The bonus shares will be given in a 2:1 ratio, which means shareholders will get two free shares for every one share they already own.
The record date (the cut-off date to be eligible for bonus shares) has not been announced yet. The company will reveal it later.
The purpose of this bonus issue is to reward existing shareholders and increase liquidity in the market.
Bonus Share Details and Dividend Track Record
As part of the bonus issue, the company will issue 72.5 crore new equity shares.
This will raise its total share capital from ₹145 crore (based on 36.06 crore shares) to ₹217.5 crore (based on 108.75 crore shares).
Patanjali Foods also has a solid dividend history. Here are the recent dividends it paid:
₹8 per share (interim) – November 2023
₹6 per share (interim) – March 2024
₹6 per share (final) – September 2023
₹5 per share (final) – September 2022
After the bonus share announcement, the company’s stock reached a day’s high of ₹1,876.40 on Thursday.
Company Background and Share Price Performance
Patanjali Foods, earlier known as Ruchi Soya, was bought by Patanjali Ayurveda in 2019 for ₹4,350 crore through a bankruptcy process.
In 2022, the company raised ₹4,300 crore through a Follow-on Public Offer (FPO) to repay past debts.
In the last five trading sessions, the stock has risen by 11%. After hitting a high following the bonus news, it slightly dipped
and is now trading at ₹1,864.30. With this recent rise, the stock has turned positive for the year.
