Daijiworld Media Network- Mumbai

Mumbai, Jul 17: In a significant development for investors, Patanjali Foods Ltd., founded by yoga guru Baba Ramdev, has approved its maiden bonus share issue, rewarding over two lakh shareholders. The board has recommended a 2:1 bonus ratio, offering two additional fully paid-up equity shares for every one share held by eligible investors.

This major move was announced following the company’s board meeting held on Thursday. A formal record date to determine eligible shareholders will be communicated shortly, the company stated in a regulatory filing.

The announcement comes amid strong market performance for the Patanjali Foods stock, which has surged nearly 11.4% over the past seven sessions, following initial news about the meeting earlier this week. The stock has gained 20% over the last 12 months and is up 5% year-to-date.

Analysts believe the bonus issue reflects the company’s confidence in its long-term fundamentals. Notably, all four analysts tracked by Bloomberg have maintained a ‘buy’ rating on the stock, with an average 12-month target price of Rs 2,101, indicating an estimated upside of 13%.

The company assured that the bonus shares will be credited by or before September 16, 2025, subject to shareholder approval. Bonus shares are issued to enhance liquidity and improve retail participation without affecting the total value of an investor's holding.

Patanjali Foods, a key player in the FMCG and edible oil space, continues to bolster its market presence with strategic decisions aimed at shareholder value enhancement.