Patanjali Foods Limited (PFL), a prominent player in the Indian FMCG sector, has made a significant announcement that is set to benefit its shareholders. The company's Board of Directors has recommended the issuance of bonus shares in a 2:1 ratio, subject to shareholder approval through a postal ballot e-voting process.

Bonus Share Details

The proposed bonus issue will see shareholders receive two new equity shares of Rs. 2.00 each for every one existing equity share held. This move is expected to increase the company's paid-up share capital while rewarding its shareholders.

Shareholder Approval Process

The company has initiated a postal ballot e-voting process for shareholder approval, which is scheduled to run from July 23, 2025, to August 21, 2025. This democratic process allows all eligible shareholders to have their say in this important corporate action.

Appeal to Physical Shareholders

In light of recent regulatory changes, Patanjali Foods is making a strong appeal to its physical shareholders. The company has highlighted that due to SEBI regulations effective from May 23, 2023, bonus shares can only be allotted in dematerialized form.

To ensure smooth allotment of bonus shares and timely receipt of dividends, the company is urging physical shareholders to take the following steps:

1. Open a demat account if they haven't already done so.
2. Share their demat account details with the Registrar and Transfer Agent (RTA).
3. Submit required forms, including ISR-4.
4. Update their KYC (Know Your Customer) documentation.

Implications for Non-Compliant Shareholders

For shareholders who remain in physical form on the record date, the company has a contingency plan. Their bonus shares will be transferred to a suspense escrow demat account until proper documentation is completed. This measure ensures that no shareholder misses out on their entitlement due to procedural delays.

Company Support

To facilitate this transition, Patanjali Foods has provided templates and guidance on its website for the KYC updation processes. The company is actively assisting shareholders in completing these formalities to ensure they receive their bonus shares and future dividends promptly.

Dividend Announcement

In addition to the bonus share issuance, Patanjali Foods has declared a final dividend of Rs. 2.00 per share (pre-bonus) for the financial year 2024-25, subject to shareholder approval. This further underscores the importance for physical shareholders to complete their KYC and dematerialization processes.

The move by Patanjali Foods to issue bonus shares and streamline its shareholder base aligns with broader market trends towards digitization and improved corporate governance. As the company continues its growth trajectory, these measures are likely to enhance shareholder value and improve overall market efficiency.

Patanjali Foods Limited , a prominent player in the Indian FMCG sector, has announced a proposal to issue bonus shares in a 2:1 ratio, subject to shareholder approval. The company has issued a postal ballot notice seeking shareholder approval for this corporate action.

Key Details of the Bonus Issue

Financial Implications

The proposed bonus issue will be funded by capitalizing up to ₹146.00 crore from Patanjali Foods' reserves, which may include the Capital Redemption Reserve, Securities Premium Account, or General Reserve. This move is aimed at rewarding shareholders and improving the liquidity of the company's shares in the stock market.

Shareholder Approval Process

Patanjali Foods is seeking shareholder approval through a postal ballot, with voting to be conducted electronically. The e-voting period will commence on July 23 and conclude on August 21. National Securities Depository Limited will provide the e-voting facility. The results of the postal ballot are expected to be announced by August 23.

Eligibility and Issuance

The cut-off date for determining eligible shareholders is July 18. If approved, the bonus shares will be issued only in dematerialized form and will rank equally with existing shares. Shareholders will receive 2 new fully paid-up equity shares of ₹2 each for every 1 existing share held.

Scrutinizer Appointment

CS Prashant Diwan has been appointed as the scrutinizer for overseeing the postal ballot process.

Shareholders are advised to participate in the e-voting process to register their decision on this significant corporate action. The outcome of this proposal could have a notable impact on the company's share structure and market perception.