Baba Ramdev-led Patanjali Ayurved said, it has raised Rs 175 crore by issuing non-convertible debentures (NCDs). The Haridwar-based firm would use these funds for expansion and working capital, a spokesperson of the company said adding the issue got fully subscribed within four minutes of opening on May 18.
Of this Rs 175 crores issued, Rs 60 crores were subscribed by IDBI Bank, Rs 90 crores by Punjab National Bank, and the rest Rs 25 crores by UCO Bank. This fundraising is for “Capital Expenditure (CapEx) and increases in demand for working capital”, the spokesperson added.
Non-convertible debentures (NCDs) are a financial instrument that is used by companies to raise long-term capital. This is done through a public issue. NCDs are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate.
The NCDs carry a coupon rate of 9.25 percent with a tenure of three years. The maturity date is May 18, 2024. This is the second debenture issuance by Patanjali Ayurved.
Also, Read This: Ratan Tata-backed Moglix Enters Unicorn Club After Raising USD 120 million
Last year on May 29, the company had raised Rs 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 total revenue of Rs 9,087.91 crore in 2019-20. The company’s biscuit, noodles, dairy businesses, solar panel, apparel businesses, and transportation are not part of Patanjali Ayurved.
Last week, Ruchi Soya Industries announced the acquisition of the biscuits business of Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs 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.
The consideration is payable in two tranches. About Rs 15 crore of the total purchase consideration will be paid on or before the closing date, while the rest Rs 45.01 crore will be paid within 90 days from the closing date, it said.
