Image Source: Business Today
Patanjali Foods Ltd has recommended a bonus share issuance in the ratio of 2:1, marking its first-ever bonus announcement since its rebranding from Ruchi Soya. The proposal, approved at the board meeting held on July 17, 2025, reflects the company’s robust financial health and intent to reward long-term shareholders.
Key Highlights:
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Shareholders will receive two bonus equity shares for every one share held, subject to regulatory and shareholder approvals.
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The bonus issue will be funded through the company’s free reserves, without impacting its cash flows or debt profile.
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The record date for eligibility will be announced shortly, following procedural clearances.
Strategic Context:
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The move comes on the back of strong Q4 FY25 performance, with net profit rising 76.3% YoY to ₹358.5 crore and revenue up 17.8% to ₹9,692.2 crore.
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Patanjali Foods has maintained a consistent dividend history, with ₹10 per share paid out in FY25.
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The bonus issue aims to enhance liquidity, broaden retail participation, and signal long-term confidence in earnings visibility.
Market Outlook:
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Shares surged nearly 8% over two days ahead of the announcement, closing at ₹1,813.60 on July 16, 2025.
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Analysts expect the bonus issue to improve trading volumes and attract new investors, especially in the FMCG and nutraceutical segments.
Sources: Economic Times, Business Standard, CNBC TV18, Goodreturns, Patanjali Foods Corporate Filings (July 2025)
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