New Delhi: Baba Ramdev-led Patanjali Foods has made a major announcement for its investors. The company, for the first time, has declared a bonus share issue. In the board meeting held on July 17, 2025, it was recommended to issue bonus shares in a 2:1 ratio. This means that for every one share held, investors will receive two additional shares for free.
The scheme is subject to shareholders approval and the company will utilize its reserves to implement it. Patanjali Foods will soon announce the record date to determine eligible shareholders for the bonus. Under this plan, the company will issue approximately 72.5 crore new shares, increasing its total share capital from Rs 145 crore to Rs 217.50 crore.
Bonus shares are additional shares given free of cost to existing shareholders out of the company’s reserves. This increases the number of outstanding shares, reduces the share price proportionally but keeps the company’s overall valuation unchanged. It is often seen as a sign of strong financial health and a reward for loyal investors.
In the March 2025 quarter, Patanjali Foods reported a 74 per cent jump in standalone net profit to Rs 358.53 crore, up from Rs 206.31 crore in the same period last year. For the full financial year, the company posted a net profit of Rs 1,301.34 crore, compared to Rs 765.15 crore in the previous year.
The company’s stock has also performed well in the market, gaining over 19% in the past year. Currently, the share is trading at Rs 1,862.35, which is about 8% below its 52-week high of Rs 2,030 (September 2024). Its 52-week low of Rs 1,541 was recorded in July 2024.
This move, thereby, is expected to not only benefit current investors but also strengthen the company’s image and stock liquidity in the market.
