Patanjali Foods announces bonus share issue in 2:1 ratio. Details here

Patanjali Foods informed the stock exchanges that its Board of Directors, at a meeting held on Thursday, July 17, 2025, considered and approved a bonus share issue.

The board has recommended issuing bonus shares in the ratio of 2:1. This means shareholders will receive two new fully paid-up equity shares of face value ₹2 each for every one existing share they hold, also of face value ₹2. The bonus issue will be subject to shareholders' approval and will be funded by utilizing the company's capital redemption reserve, securities premium, or general reserve.

The company said it will announce the record date — the date on which shareholders must be on the company’s books to be eligible for the bonus shares — in due course.The company will issue approximately 72,50,12,628 new equity shares under the bonus scheme. After the bonus shares are allotted, the company’s total share capital will rise from the current ₹145.00 crore (based on 36,06,31,414 shares) to ₹217.50 crore (based on 108,75,18,842 shares).As per the latest audited balance sheet dated March 31, 2025, Patanjali Foods has sufficient reserves to carry out this bonus issue. The capital redemption reserve stands at ₹266.93 crore, the securities premium account at ₹4704.37 crore, and the general reserve at ₹418.15 crore.

The bonus shares are expected to be credited or dispatched to eligible shareholders within two months from the date of the Board meeting—on or before September 16, 2025.

The move is aimed at rewarding existing shareholders and increasing liquidity of the company’s stock in the market.

Bonus shares are additional shares given by a company to its existing shareholders without any extra cost, based on the number of shares already held. These shares are issued by capitalizing a part of the company’s reserves, such as the securities premium, general reserve, or capital redemption reserve. Bonus shares increase the total number of shares in circulation but do not alter the company’s overall market value, thereby reducing the share price proportionally. This move is often seen as a reward to shareholders and a sign of a company’s strong financial position.

Q4 EarningsIn the March 2025 quarter, Patanjali Foods reported a strong 74 percent year-on-year rise in its standalone net profit, which stood at ₹358.53 crore. This marked a significant improvement over ₹206.31 crore recorded in the same quarter of the previous year.

The company’s revenue from operations also witnessed growth, rising to ₹9,744.73 crore in Q4FY25 from ₹8,348.02 crore in the corresponding quarter last year.

For the full financial year 2024–25, Patanjali Foods posted a net profit of ₹1,301.34 crore, up from ₹765.15 crore in FY24. Total income during the year increased to ₹34,289.40 crore, compared to ₹31,961.62 crore in the previous fiscal.

In the past one year, the stock has gained over 19 percent, currently trading at ₹1,862.35. It remains more than 8 percent below its 52-week high of ₹2,030, which was touched in September 2024. The stock had also recorded its 52-week low of ₹1,541 in July 2024.

Interestingly, the stock has seen a strong rebound in July 2025, rising 13 percent so far after witnessing two consecutive months of losses. It had declined 1 percent in June and dropped 12.3 percent in May. Prior to that, it had posted a 5.4 percent gain in April, 2.7 percent in March, a 3.5 percent dip in February, and a 2.4 percent uptick in January.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories