Patanjali Foods Seeks Shareholder Approval for 2:1 Bonus Share Issue

2 min read     Updated on 22 Jul 2025, 09:31 AM
scanxBy ScanX News Team
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Overview

Patanjali Foods Limited has announced a proposal to issue bonus shares in a 2:1 ratio, subject to shareholder approval. The company will capitalize up to ₹146.00 crore from its reserves for this purpose. Eligible shareholders as of July 18 will receive 2 new fully paid-up equity shares of ₹2 each for every 1 existing share held. E-voting for shareholder approval will run from July 23 to August 21, with results expected by August 23.

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*this image is generated using AI for illustrative purposes only.

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

Detail Value
Ratio 2:1
Face Value ₹2.00 per share
Capitalization Up to ₹146.00 crore
E-voting Period July 23 to August 21
Cut-off Date for Eligibility July 18

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.

Historical Stock Returns for Patanjali Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-0.96%-3.16%+15.14%+3.42%+14.66%+144.12%
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Patanjali Foods Announces First-Ever 2:1 Bonus Share Issue, Boosting Shareholder Value

1 min read     Updated on 17 Jul 2025, 12:07 PM
scanxBy ScanX News Team
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Overview

Patanjali Foods has declared a bonus share issue in the ratio of 2:1, meaning shareholders will receive two additional shares for every one share held. This move will triple the number of shares for each shareholder without additional cost. The bonus issue is expected to enhance liquidity and potentially improve the stock's marketability. While the number of shares will increase, the company's total market capitalization remains unchanged. Shareholders should await further announcements regarding the record date and ex-bonus date.

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*this image is generated using AI for illustrative purposes only.

Patanjali Foods , a prominent player in the Indian food industry, has made a significant announcement that is set to benefit its shareholders. The company has declared its first-ever bonus share issue in the ratio of 2:1, effectively rewarding its investors with additional shares.

Bonus Share Details

The bonus share issue, as announced by Patanjali Foods, will be structured as follows:

  • Ratio: 2:1
  • Meaning: For every one share held, shareholders will receive two additional shares
  • Impact: This move will triple the number of shares held by each shareholder without any additional cost

Implications for Shareholders

This bonus issue carries several implications for Patanjali Foods' shareholders:

  1. Increased Share Count: Shareholders will see a threefold increase in the number of shares they own, without any additional investment.

  2. Enhanced Liquidity: With more shares in circulation, the stock's liquidity in the market is likely to improve, potentially making it easier for investors to buy or sell shares.

  3. Unchanged Proportional Ownership: While the number of shares will increase, each shareholder's proportional ownership in the company remains the same, as the bonus issue applies equally to all existing shareholders.

  4. Market Perception: Bonus issues are often viewed positively by the market, as they signal the company's confidence in its future prospects and commitment to rewarding shareholders.

Company's Perspective

For Patanjali Foods, this bonus issue could be seen as a strategic move to:

  • Enhance shareholder value and loyalty
  • Potentially improve the stock's marketability and liquidity
  • Signal confidence in the company's financial health and future growth prospects

It's important to note that while the number of shares will increase, the company's underlying fundamentals, such as total market capitalization, remain unchanged by this corporate action.

Next Steps for Investors

Shareholders of Patanjali Foods should keep an eye out for further announcements regarding:

  • The record date for determining eligibility for the bonus shares
  • The ex-bonus date, after which new investors will not be eligible for the bonus issue
  • Any regulatory approvals required for the issuance of new shares

Investors are advised to consult with their financial advisors to understand the implications of this bonus issue on their individual investment strategies and tax situations.

Additional Information

It's worth noting that Patanjali Foods has a history of rewarding its shareholders. The company has previously paid dividends in 2022, 2023, and 2024, demonstrating a consistent commitment to returning value to its investors.

As Patanjali Foods moves forward with this shareholder-friendly initiative, market participants will be keen to observe its impact on the stock's performance and the company's overall market perception in the coming weeks.

Historical Stock Returns for Patanjali Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-0.96%-3.16%+15.14%+3.42%+14.66%+144.12%
Patanjali Foods
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