Patanjali Foods Sees Major Block Deal: 1.2 Crore Shares Worth Rs 2,223.4 Crore Change Hands

The shares of Patanjali Foods witnessed significant movement on Friday, September 13, as a massive block deal took place, involving 1.2 crore shares—equivalent to 3.3% of the company’s equity—valued at Rs 2,223.4 crore. The identities of the buyers and sellers involved in this deal remain undisclosed, but the transaction marks a notable development for the FMCG giant.

Stock Performance Amid Block Deal

Following the block deal, Patanjali Foods’ stock experienced a dip, closing down by 3.88% at Rs 1,857. The stock had opened at Rs 1,885.10 and briefly touched an intraday high of Rs 1,896.20. This drop reflects the market’s immediate reaction to the large volume of shares changing hands, though the overall sentiment around the stock remains cautiously optimistic.

Block Deal Details

As per the data available on the exchanges, the first block deal involved Rs 2,060.38 crore, with 10,961,492 shares traded at Rs 1,879.65 per share. A smaller subsequent block deal of Rs 54.27 crore saw 292,717 shares change hands at Rs 1,853.95 per share. These transactions contributed significantly to the overall trading volume, adding to the day’s market activity for Patanjali Foods.

Steady Performance in 2024

Despite the recent dip, Patanjali Foods has shown a upward trend in 2024, with its stock price rising by 18.08% year-to-date. The company’s consistent performance highlights its growing influence in the FMCG sector, supported by strategic acquisitions and expansion initiatives.

Strategic Acquisitions Powering Growth

Patanjali Foods has been on an aggressive growth trajectory since its acquisition of Ruchi Soya Industries in 2019 for Rs 4,350 crore. The acquisition marked a turning point, enabling the company to diversify its product offerings and capture a larger market share. In July 2024, Patanjali Foods further expanded its portfolio by acquiring the non-food business of Patanjali Ayurved for Rs 1,100 crore. This strategic move added key segments like dental care, skincare, haircare, and home care products to its portfolio, enhancing the company’s market position.

FMCG Segment Leading Revenue Growth

The expansion into the FMCG space has been a game-changer for Patanjali Foods, introducing a wide array of healthy and innovative products. This diversification has significantly boosted the company’s revenues, with the FMCG segment now contributing over 30% to the total revenue in FY 2023-24, up from 20% in the previous year. The company’s commitment to expanding its product line and entering new markets continues to be a key driver of its robust financial performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.