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Patanjali Ayurved likely to announce IPO later this year

PALAK SHAH Mumbai | Updated on April 04, 2021

Patanjali Ayurved, the home-grown fast moving consumer goods (FMCG) major, is likely to announce plans for an initial public offering later this year, sources told BusinessLine.

On March 16, Baba Ramdev, the company’s founder, told a gathering at the BSE that he would soon come to the exchange to make two big announcements: one with regard to the 25 per cent stake dilution of Ruchi Soya and the other on Patanjali.

Patanjali competes with HUL, Marico and Dabur in several segments and had reported a 22 per cent growth in its net profit for 2019-20. Per its filings with the Ministry of Corporate Affairs, Patanjali — the group’s flagship company — reported ₹423 crore net profit for 2019-20 compared to ₹349 crore in 2018-19. Operating revenue grew 6 per cent to ₹9,023 crore in FY20.

Analysts say that Patanjali could be valued around ₹40,000 crore based on the industry Price to Earnings (PE) multiple of around 80. A stake dilution of 10 per cent initially could lead to the company raising nearly ₹4,000 crore initially. In the next three years, the company will still have to dilute more 15 per cent stake to meet market regulator SEBI’s minimum shareholding norms.

Email and WhatsApp messages to Patanjali remained unanswered.

Published on April 04, 2021

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