Patanjali Foods Ltd share price: The board of Yogguru Ramdev’s company Patanjali Foods Limited (PFL) has taken an important decision regarding its business. Actually, PFL has approved the acquisition of Home and Personal Care (HPC) business from Patanjali Ayurveda Limited (PAL). A lump sum amount of Rs 11,000 crore has been negotiated for the acquisition of Patanjali Foods.
Additionally a licensing arrangement has been agreed stipulating a 3% turnover-based fee along with other conditions. This strategic move by Patanjali Foods will leverage the brand equity of Patanjali Ayurved’s household and personal care business. It is spread across the businesses of dental care, skin care, home care and hair care.
What did the company say
According to Patanjali Foods, the acquisition of Patanjali Ayurved’s Home & Personal Care business is aimed at strengthening its existing FMCG product portfolio. This is expected to lead to strong growth in revenue and EBITDA. There will also be an increase in employees, distribution network, contracts. This agreement allows Patanjali Foods to use the trademarks and related intellectual property rights owned by PAL.
Following the Board’s approval, Patanjil Foods will proceed to execute definitive agreements related to the acquisition and seek necessary approvals for the transaction. Patanjali Ayurved Limited was advised by Jefferies India Private Limited on this transaction.
About the companyPatanjali Foods Limited, which came into existence in 1986, is one of the leading FMCG companies in India. The company operates in multiple sectors including edible oil, food, FMCG and wind energy production. It includes brand portfolio like Patanjali, Ruchi Gold and Nutrela.
Patanjali Foods shares become rocket
Amidst this news, shares of Patanjali Foods were seen rising like a rocket on Monday. On the first trading day of the week, this share had risen by about 8% to reach a high of Rs 1725.05. At the end of trading the share price was at Rs 1699.65. This represents an increase of 6.81%.
