Patanjali's Rs 250 crore debentures issue subscribed within three minutes of opening
May 28, 2020
Mumbai (Maharashtra) [India], May 28 : Baba Ramdev-led Patanjali Ayurved's debentures issue worth Rs 250 crore was subscribed within three minutes of opening on Thursday.
The debenture has been rated as AA by Brickwork. The fund-raising will be used to meet the Haridwar-based company's working capital requirements and strengthen the supply chain network.
The non-convertible debentures (NCDs) carry a coupon rate of 10.1 per cent with a tenure of three years. The NCDs listed on the stock exchanges are redeemable. This is the first-ever issuance of debentures by Patanjali Ayurved.
Patanjali spokesperson S K Tijarawala said in the COVID-19 pandemic, demand for Ayurveda-based products, which help in boosting immunity, along with other products has gone up by three-folds.
"This has put constraints in our supply chain, right from manufacturing to distribution," he said.
In December last year, Patanjali Ayurved acquired the bankrupt Ruchi Soya for Rs 4,350 crore, maker of soya food brand Nutrela, through an insolvency process.
