Our Bureau
New Delhi
This Thursday, on 17th July, Patanjali Foods Ltd. board has considered and approved the maiden issue of bonus shares to more than two lakh shareholders of the company. The board has also advised that the issue of bonus shares should be in a ratio of 2:1.
The issue of bonus in 2:1 ratio will imply that the one new fully paid-up equity share that holds the face value of Rs. 2 which will be given for every two shares that an eligible shareholder holds. The bonus issue will now be subject to the approval by shareholders of the company. It is reported that it will be funded through company’s capital redemption reserve, securities premium, or general reserve
The company stated, “The company will inform the “record date” for determining eligibility of shareholders entitled for issuance of bonus shares, in due course.” The record date refers to the date on which the shareholders must be on the company’s books so that they can be considered eligible for the bonus shares. Patanjali Foods has stated that they will credit the bonus shares either on September 16th, 2025 or before that.
Ever since the Baba Ramdev-owned company announced in its board meeting this Monday on 14th July, the company’s share price has jumped 11.4%. The company’s stock continued to surge high and rallied to the seventh day. In the past year the stock of the company has risen 20% and 5% on a year-to-date basis.
The bonus issue that the company’s board just agreed on refers to the distribution of free shares to the shareholders who are eligible. The share price will fall in the ratio of the bonus allotment at the ex-date but that won’t mean that it will be affecting the overall value of the holdings.
