Shares of Patanjali Foods were back in the red on Thursday, a day after the stock broke its four-session losing streak at the bourses.
What Happened: The exchanges have frozen the shares of the company’s promoters. The BSE and the NSE took action against the promoters, as the company failed to increase public shareholding to the mandatory level.
The Security and Exchange Board of India (SEBI)‘s rules mandate that at least a 25% stake in a listed entity must be held by public shareholders. At the end of the December quarter, Patanjali Foods’ public shareholding was at 19.18%.
See Also: Why ITC Shares Are On The Up Today
The Baba Ramdev-led company has responded to the action today stating that the regulatory action will not impact the company’s financial position. It further said that the promoters have been discussing
various modes for increasing the public shareholding and are confident of achieving
mandatory MPS within the next few months. “We have a strong management team in place to steer towards our long-term journey,” the company added.
Price Action: Shares of Patanjali Foods were down 2.18% at ₹939.95 as the markets opened on Thursday.
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