Baba Ramdev-led Patanjali Ayurved on Tuesday said it has raised ₹ 175 crore by issuing non-convertible debentures (NCDs).
The Haridwar-based firm would use the funds for expansion and working capital, a spokesperson of the company said adding the issue got fully subscribed within four minutes of opening on Tuesday.
“Patanjali Ayurved raised another ₹ 175 crore via NCDs,” company's spokesperson SK Tijarawala said.
Of this ₹ 175 crore issue, ₹ 60 crore was subscribed by IDBI Bank, ₹ 90 crore by Punjab National Bank and the rest ₹ 25 crore by Uco Bank.
This fund raise is for "CAPEX and increase in demand for working capital", he added.
The NCDs carry a coupon rate of 9.25 % with a tenure of three years. The maturity date is May 18, 2024.
This is the second debenture issuance by Patanjali Ayurved.
Last year on May 29, the company had raised ₹ 250 crore to fund its working
capital requirement and strengthen supply chain network.
Patanjali, which is mainly into fast-moving consumer goods business and ayurvedic medicines, had a total revenue of ₹ 9,087.91 crore in 2019-20.
The company’s biscuit, noodles, dairy businesses, solar panel, apparel businesses and transportation are not the part of Patanjali Ayurved.
Last week, Ruchi Soya Industries announced the acquisition of biscuits business of Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at ₹ 60.02 crore.
The board of Ruchi Soya on May 10, 2021 approved the signing of a Business Transfer Agreement in this regard with PNBPL.
Patanjali had acquired Ruchi Soya, maker of soya food brand Nutrela, for ₹ 4,350 crore through an insolvency process in December 2019.
