In a significant move to strengthen its investment portfolio, GQG Partners, led by Rajiv Jain, and other investors have acquired a 5.96% stake in Patanjali Foods through an offer for sale (OFS). The purchase, made on July 14, involved various funds managed by GQG Partners, signaling the firm’s interest in the FMCG giant.
Patanjali Foods, under the leadership of Baba Ramdev, saw GQG Partners and other investors purchase 2.15 crore shares, amounting to a 5.96% stake in the company, through the stock exchange settlement process. The OFS was issued at a floor price of ₹1,000 per share, allowing Patanjali Ayurved, the largest shareholder, to offload 2.53 crore shares of the firm, resulting in a potential 9% holding in the event of oversubscription. Presently, Patanjali Ayurved holds a 39.37% stake in Patanjali Foods, making it the company’s largest stakeholder. The promoter and promoter groups together collectively own 80.8%.
GQG Partners’ strategic acquisition in Patanjali Foods was made through various funds, including GQG Partners EM Equity Fund A Series, GQG Partners EM Equity Fund, GQG Partners EM Equity Fund Australia, and others. The investment firm has been actively expanding its investment horizon, recently purchasing a 3% stake in Adani Transmission through open market transactions worth ₹2,666 crore. GQG Partners, in collaboration with the IHC Group and other investors, previously invested around $1 billion in Adani Group stocks, showcasing their continued interest in the conglomerate’s stocks.
The OFS for Patanjali Foods took place over two days, opening up to non-retail investors on July 13 and retail investors on July 14. With a focus on expanding its presence in the FMCG sector, the acquisition aligns with GQG Partners’ strategy to diversify its investment holdings and capitalize on growth opportunities in India’s consumer goods market.
Rajiv Jain, the driving force behind GQG Partners, has displayed a strong investment appetite and a keen eye for lucrative ventures. The recent purchases in Patanjali Foods and Adani Group stocks further underscore GQG Partners’ commitment to identifying potential market leaders and capitalizing on their growth trajectories.
As the Indian FMCG market continues to witness significant growth and consumer demand, GQG Partners’ latest investment in Patanjali Foods reflects a growing confidence in the company’s prospects and long-term vision. The acquisition not only adds value to GQG Partners’ investment portfolio but also strengthens its position as a key player in the Indian market. With an eye on further opportunities, investors will closely watch GQG Partners’ future moves as it continues to expand its investment footprint in India’s dynamic business landscape.
