Patanjali Foods Limited has announced its first-ever bonus share issue after a board meeting held on Thursday, July 17. The company will issue bonus shares in the ratio of 2:1. This means that for every one share a person owns, they will receive two additional shares for free.
However, the record date for this bonus issue has not been announced yet. The company stated that it will declare the date in due time. The main purpose of this bonus issue is to reward existing shareholders and to increase liquidity of the company’s shares in the market.
Bonus Share Details and Dividend History
Under the bonus plan, the company will issue about 72.5 crore new equity shares. After the bonus allotment, the total share capital will increase from the current ₹145 crore (based on 36.06 crore shares) to ₹217.5 crore (based on 108.75 crore shares).
Patanjali Foods has a good dividend history as well. It paid:
₹8 per share (interim dividend) in November 2023
₹6 per share (interim dividend) in March 2024
₹6 (final dividend) in September 2023
₹5 (final dividend) in September 2022
Following the bonus announcement, the company’s stock touched an intraday high of ₹1,876.40 on Thursday.
Company Background and Share Performance
Patanjali Foods, formerly known as Ruchi Soya, was acquired by Patanjali Ayurveda in 2019 through a bankruptcy process for ₹4,350 crore.
In 2022, the company launched a follow-on public offer (FPO) worth ₹4,300 crore, which was mainly used to repay Ruchi Soya’s old debts.
In recent trading, Patanjali Foods’ stock has risen 11% in the last five sessions. After hitting a high post-bonus news, the stock slightly corrected and is now trading at ₹1,864.30. Thanks to this recent rise, the stock has now turned positive for the year.