Because to the Covid pandemic and market conditions occurring at the time, it is alleged that the promoters were attempting to take the necessary steps to meet the MPS in a timely manner.
In a recent move, the NSE and BSE have frozen the promoters’ shares of Patanjali Foods, a company managed by Baba Ramdev’s Patanjali group. The corporation stated, however, that the decision will not affect its operations.
Patanjali Foods Ltd (PFL), formerly known as Ruchi Soya Industries, announced on Thursday that the freezing of its promoters’ shares in the company “would have no effect” on the company’s financial status or operations.
The PFL reported that key stock exchanges BSE and NSE had frozen the shares of 21 of its promoter businesses, including Patanjali Ayurveda, for failing to meet minimum public shareholding requirements.
A listed firm is required by Rule 19A(5) of the Securities Contracts (Regulation) Regulations, 1957 to have a minimum public shareholding (MPS) of 25%.
“Our promoters have informed us that they are dedicated to obtaining the minimum public shareholding required by law. They have been debating the most suitable strategies for raising public shareholding. They are optimistic about implementing mandatory MPS within the next few months “in a filing, the PFL stated.
Because to the Covid pandemic and market conditions occurring at the time, it is alleged that the promoters were attempting to take the necessary steps to meet the MPS in a timely manner.
The PFL, however, issued a Follow-n Public Offering (FPO) in March 2022 and boosted MPS to 19.18 percent by issuing 6.61 billion Rs 2 equity shares at a premium of Rs 651 per share.
Currently, 19.18 percent of the company’s shares are owned by the general public. The corporation must increase its public shareholding by 5.82 percent in order to meet the MPS, according to this provision.