GQG Partners, an investment firm based in the United States, has invested approximately ₹2,400 crore to acquire a 5.96% stake in Patanjali Foods, a FMCG company led by Baba Ramdev.
Offer for Sale (OFS)
Patanjali Foods initiated an Offer for Sale (OFS) process, allowing its largest shareholder, Patanjali Ayurved, to sell off 2.53 crore shares of the company. The OFS was conducted at a floor price of ₹1,000 per share, resulting in a total investment of ₹2,400 crore by GQG Partners.
The OFS was carried out over two days. It was opened for non-retail investors on July 13 and for retail investors on July 14. The sale price offered during the OFS was at a discount of 18.36% to the prevailing market price of ₹1,225 on the BSE.
On Monday, the closing price of Patanjali Foods shares was ₹1,254.70, representing a 2.43% increase.
GQG Partners’ Investments in India
GQG Partners has been actively increasing its exposure to India. The firm initially invested in the Adani group in March, during a period when the group was facing damaging allegations. GQG Partners has also invested in other prominent Indian companies, including ITC Ltd., Sun Pharmaceutical Industries Ltd., and various leading banks such as the State Bank of India, ICICI Bank Ltd., and Housing Development Finance Corp.