Bonus Alert: Patanjali Foods Considers First Bonus Share Issue on July 17

Patanjali Foods Ltd, formerly known as Ruchi Soya, has announced that its board will consider the company’s first bonus share issue during a meeting scheduled for July 17, 2025. This development marks a significant move as the company aims to strengthen shareholder value amid a period of underperformance in the stock.

Patanjali Foods’ First Bonus Share Plan in Focus

In a regulatory filing dated July 14, 2025, Patanjali Foods informed the exchanges that its board will discuss a proposal to issue bonus shares. If approved, this would mark the company's debut in rewarding shareholders with bonus equity. The stock has delivered negative performance on a YTD basis. 

Background: From Ruchi Soya to Patanjali Foods

Patanjali Ayurved acquired Ruchi Soya through the insolvency resolution process in 2019 for a total amount of ₹4,350 crore. Post-acquisition, in June 2022, the company underwent rebranding and began operating as Patanjali Foods. To reduce debt, a Follow-on Public Offer worth ₹4,300 crore was launched in 2022. The stock has since aimed to rebuild investor trust through consistent dividend declarations.

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Dividend Performance and Shareholder Rewards

Patanjali Foods has demonstrated a commitment to shareholder returns, issuing interim dividends of ₹8 per share in November 2024 and ₹6 in March 2024. It also paid final and regular dividends of ₹6 and ₹5 per share in 2023 and 2022, respectively, preceding this potential bonus share development.

Patanjali Foods Share Price Performance

On July 15, 2025, Patanjali Foods share price opened at ₹1,688.50 on NSE, above the previous close of ₹1,673.70. During the day, it surged to ₹1,717.30 and dipped to ₹1,672.00. The stock is trading at ₹1,716.00 as of 12:13 PM. The stock registered a significant gain of 2.53%.

Over the past week, it has moved up by 3.34%, over the past month, it has moved up by 3.51%, and over the past 3 months, it has declined by 11.24%.

Conclusion

The possible bonus share issue under consideration by Patanjali Foods may boost investor sentiment. As the company transitions through strategic initiatives and value creation efforts, this move signifies another step toward strengthening its market standing.

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