Patanjali ropes in investment banks to raise Rs 1,000 cr funds

The Asian Age With Agency Inputs

Business, Companies

FMCG major had recently announced it will soon venture into dairy products and apparel business.

Baba Ramdev recently announced Patanjali would be venturing into dairy products business soon. (Photo: PTI)

Mumbai: Patanjali Ayurveda, promoted and endorsed by yoga guru Baba Ramdev, has said it has hired two investment banks to guide the company in raising funds. According to a report in Mint, Patanjali is eying to raise Rs 1,000 crore equity linked funds.

Last month, the Ayurved major that has of late expanded its outreach to more number of households had announced it was planning to raise Rs 1,000 crore worth of funds to further enlarge its businesses. Mint quoted two persons who were privy to the development as giving out the details.

"The discussions assume significance since this is for the first time since its founding in 2007 that Patanjali is exploring an equity-linked fund-raise option,” said one of the persons who chose to remain anonymous as the matter was still a private affair.

The money raised will come along with interest payment that concerns debt. Besides, structured credit may include an equity stake in the form of attached warrants or a conversion feature similar to that of a convertible bond, the Mint report added. Patanjali had recently announced it will venture into dairy products and apparel business soon.

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