Shares of Patanjali Foods have dipped sharply on the back of NSE and BSE freezing shares of the promoters.
This action by the stock exchanges' is due to the promoters still holding 80% stake in the company, even though SEBI rules mandates a listed entity to have a minimum public shareholding of 25%
Meanwhile, the Baba Ramdev led company said that this decision will not have any impact on its functioning or financial position.
On Thursday, Patanjali Foods informed that leading bourses BSE and NSE had frozen shares of its 21 promoter entities, including Patanjali Ayurved for failing to meet minimum public shareholding norms.
In a filing, PFL said its promoters are "fully committed" to achieving the minimum public shareholding and discussions are going on for this.
"We have received a communication from our promoters that they are fully committed to the mandatory compliance of achieving minimum public shareholding. They have been discussing various modes best suited for increasing public shareholding. They are confident of achieving mandatory MPS within the next few months," it said.