Patanjali Foods Ltd (formerly Ruchi Soya Industries) on Thursday said the freezing of its promoters’ shareholding in the company will not affect its financial position and operations.
Stock exchanges NSE and BSE have put a hold on the promoters’ shares of Patanjali Foods Limited (PFL), a company of Baba Ramdev-led Patanjali Group. However, the company said that this decision will not affect its functioning. Patanjali Foods Ltd (formerly Ruchi Soya Industries) on Thursday said the freezing of its promoters’ shareholding in the company will not affect its financial position and operations.
PFL on Thursday said BSE and NSE have barred trading in shares of 21 of its promoter entities, including Patanjali Ayurveda Ltd, Acharya Balakrishna, Patanjali Parivahan and Patanjali Gramodyog Nyas, for non-compliance with minimum public shareholding norms. .
Rule 19A(5) of the Securities Contracts (Regulation) Rules, 1957 makes it mandatory for a listed entity to have a minimum public shareholding (MPS) of 25 per cent.
Patanjali Foods informed that its promoters are fully committed to achieving the minimum public shareholding and discussions are on in this regard. He said that the promoters of the company are confident that they will get the mandatory MPS in the next few months.
At present, 19.18 percent of the company’s shares are held by public shareholders and it will have to increase public shareholding by 5.82 percent to achieve the MPA. A total of 29,25,76,299 equity shares will be affected by this order of ban on shares.
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