New Delhi: Baba Ramdev-led Patanjali Foods has created a buzz in the stock market after announcing its intention to issue bonus shares for the first time. This move has kept the company’s shares soaring and added nearly Rs 2,500 crore to its market capitalisation in a single day.
According to data from the Bombay Stock Exchange (BSE), Patanjali Foods’ share price surged 4.05 per cent on Tuesday, closing at Rs 1,743.15. During intraday trade, the stock even touched a high of Rs 1,751.70. The stock had opened the session at Rs 1,675.35. Despite this rally, the stock still remains over 14 per cent below its 52-week high of Rs 2,030.00, recorded on September 4, 2024.
The sudden spike in share price follows the company’s announcement that its board will meet on July 17 to consider the issuance of bonus shares. This marks the first time that Patanjali Foods is planning such a shareholder reward, sparking strong investor interest.
The market capitalization of the company jumped from Rs 60,732.49 crore on July 14 to Rs 63,190.29 crore on July 15, an increase of Rs 2,457.8 crore in just one trading session. Market analysts suggest that this momentum could continue in the coming days, and the company is aiming to cross a market cap of Rs 70,000 crore soon.
Patanjali Foods, formerly known as Ruchi Soya, was acquired by Patanjali Ayurveda in 2019. In 2022, the company rebranded itself and subsequently launched a follow-on public offer (FPO) worth Rs 4,300 crore to strengthen its capital base.