Patanjali Foods Ltd has announced a significant corporate action that will benefit its shareholders. The company has declared a bonus issue in the ratio of 2:1, meaning shareholders will receive two additional equity shares for every one share they currently hold.

Key Details of the Bonus Issue

• Ratio: 2:1 (two bonus shares for every one share held)
• Record Date: September 11, 2023
• Last Date to Buy: Due to the T+1 settlement cycle in Indian markets, investors must purchase shares by the final trading day before the record date to be eligible for the bonus shares.

Implementation of the Bonus Issue

The bonus shares will be issued by capitalizing the company's free reserves, securities premium, or retained earnings. This move effectively increases the number of outstanding shares without changing the company's underlying value.

Impact on Shareholders

While the bonus issue increases the number of shares held by each shareholder, it's important to note that the overall investment value remains unchanged. This is because the share price typically adjusts proportionately to reflect the increase in the number of shares.

Market Response

The market's initial reaction to this news appears neutral. Patanjali Foods' shares closed flat at ₹1,802.00 on the Bombay Stock Exchange (BSE) on the day of the announcement.

Investor Considerations

Shareholders and potential investors should keep in mind:

1. The record date of September 11 is crucial for determining eligibility for the bonus shares.
2. The bonus issue may potentially improve liquidity in the stock by increasing the number of shares in circulation.
3. While the bonus issue doesn't directly add value, it can be seen as a positive signal about the company's financial health and confidence in future prospects.

Investors are advised to consult with their financial advisors to understand the implications of this corporate action on their individual portfolios.

Patanjali Foods Limited (PFL), a key player in the Indian FMCG sector, has achieved a significant milestone in its international trade operations. The company announced that it has been granted the prestigious Authorized Economic Operator (AEO-T2) certification by the Directorate of International Customs.

Enhanced Global Trade Status

The AEO-T2 certification is a recognition of Patanjali Foods' commitment to maintaining secure international supply chains. This certification, which aligns with the World Customs Organization's (WCO) SAFE Framework of Standards, is expected to streamline the company's global trade processes and enhance its credibility in international markets.

Implications for Patanjali Foods

Receiving the AEO-T2 status brings several advantages for Patanjali Foods:

1. Improved Supply Chain Security: The certification acknowledges the company's robust measures in securing its international supply chain.
2. Faster Customs Clearance: AEO-T2 status often results in expedited customs procedures, potentially reducing delays in international shipments.
3. Enhanced Global Reputation: This certification serves as a mark of reliability and compliance in international trade circles.
4. Competitive Advantage: The AEO-T2 status may give Patanjali Foods an edge over competitors in global markets.

Official Disclosure

In compliance with regulatory requirements, Patanjali Foods Limited has officially disclosed this development to the stock exchanges. The company stated in its filing:

"Patanjali Foods Limited has been granted Authorised Economic Operator Certificate (AEO – T2). This certification demonstrates Patanjali's profound commitment to secure the international supply chain in compliance of WCO's Safe Framework of Standards."

Looking Ahead

The AEO-T2 certification is likely to bolster Patanjali Foods' position in the international market. As the company continues to expand its global footprint, this recognition from the Directorate of International Customs could play a crucial role in facilitating smoother trade operations and opening new opportunities in the international arena.

Investors and stakeholders will be keenly watching how Patanjali Foods leverages this certification to enhance its international trade capabilities and potentially boost its global market presence.