There is no good news for the investors of Baba Ramdev's company Patanjali Foods. Stock exchanges have frozen 29.258 crore shares of the promoter group entities of the company. The company failed to meet the norms of minimum public shareholding by the stipulated time. This is the reason why this action has been taken against him. The public shareholding in Patanjali Foods stood at 19.18 per cent at the end of December.
According to SEBI rules, there should be at least 25 per cent public shareholding in any listed company. Patanjali Foods was earlier known as Ruchi Soya Industries. In December 2017, NCLT started insolvency proceedings against it. In July 2019, the tribunal approved the resolution plan of Patanjali Ayurveda. After the implementation of the resolution plan, the public shareholding in the company had come down to 1.1 per cent.
In accordance with SEBI regulations, if a company's public shareholding is less than 25%, it must reach this level within three years. In March 2022, Patanjali Foods has announced a follow-up public offer. With this, 6.62 crore shares were issued. This raised the public ownership of the company's shares to 19.18%. Yet, the business did not take any action to raise it to 25% following this. Shares of 21 promoter firms have had their shares frozen, according to a statement from the company. With a 39.4% ownership position, Patanjali Ayurveda holds the largest share in the business. Unless the company complies with SEBI requirements, these shares will remain frozen.