On Thursday, Patanjali Ayurveda’s Rs 250 crore debt instrument was fully promised within 3 minutes of opening. The sell-out was ground-breaking, and showed the excitement and faith of investors.
The Baba Ramdev-led firm plans on using these funds for working capital requirements. In addition, the money will strengthen its supply-chain network. Patanjali is now one of the most trusted brands in India. Many also say it is a dashing example of the Swadeshi Movement led by Ramdev.
This is Patanjali Ayurveda’s first bond issue. In recent years, Patanjali has become one of the leading companies in the FMCG segment.
The non-convertible debentures (NCDs) carry coupon rates of 10.1% with a tenure of 3 years. The maturity date of the NCDs is May 28, 2023.
Stock exchanges list the NCDs and are redeemable. In addition, Brickwork rates the NCDs an AA.
Several companies need funding to resume production and refill/structure their supply-chains. As a result, companies are trying their best to raise money from the market through debt instruments. These instruments help companies facing liquidity crunches.
In December 2019, Patanjali acquired the maker of soya food brand Nutrela, Ruchi Soya for Rs 4350 crore, through an insolvency process.