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GQG Partners increases its involvement in India by acquiring a 5.96% stake in Patanjali

Jain has been progressively increasing his investments in Indian companies in recent months. In the last three months alone, GQG Partners' total investment in Adani Group companies has reached a substantial amount of ₹26,445 crore.
 
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Latest Updates Mumbai: Indian company Patanjali Foods Ltd, founded by Baba Ramdev, recently announced that investment management firm GQG Partners LLC, led by Rajiv Jain, acquired a 5.96% stake in the company through an ongoing offer-for-sale (OFS) on July 14th. GQG Partners' investment is estimated at ₹2,639.4 crore, indicating a purchase price of ₹1,223.35 per share.

This news caused shares of Patanjali Foods to surge by 2.91%, reaching a high of ₹1,259 per share before closing at ₹1,223.35 per share. The company, which specializes in food and ayurvedic products, currently has a market capitalization of ₹45,419.5 crore. Despite the company's stock delivering a 20.3% return over the past year, it underperformed compared to the broader market index Nifty 50, which gained at least 23%.

Rajiv Jain has been increasingly investing in Indian firms, with GQG Partners' total investment in Adani Group companies reaching ₹26,445 crore in the last three months. Additionally, GQG Partners holds significant stakes in other prominent Indian companies such as HDFC Ltd. (now merged with HDFC Bank), ITC Ltd, ICICI Bank, SBI, Sun Pharma, Bharti Airtel, RIL, Cipla, NTPC, JSW Steel, Coal India, L&T, and Ambuja Cements.

To adhere to the minimum public shareholding guidelines set by the Securities and Exchange Board of India (SEBI), Patanjali Foods announced its primary promoter, Patanjali Ayurved Ltd, planned to divest at least 7% of its stake for ₹2,533.9 crore through the OFS.

During the OFS, the retail portion was fully subscribed, and the stock hit the 5% upper circuit at ₹1,225 per share on the BSE. The OFS offered shares at a discounted floor price of ₹1,000 to retail investors, while non-retail investors like GQG Partners had a cut-off price of ₹1,103.80 per share.

The non-retail portion of the OFS saw an oversubscription of 200% on Thursday, with total bids for nearly 45.6 million shares against the availability of only 22.8 million shares for non-retail buyers.

Following the conclusion of the OFS, the promoter holding in Patanjali reduced to 73.82%, complying with SEBI's minimum public shareholding requirements.