Thread by @PrasadWakchaure

Baba Ramdev has used a similar method to Adani to rig the share price of #PatanjaliFoods and raised money through FPO. Baba Ramdev bought Ruchi Soya for 4350 Cr in 2019. By keeping free float by just 1.1%, the stock went up by 8000%. The market cap at the peak was 50 thousand Cr.

In March 2022 Patanjali sold 19% of shares at Rs 650 per share to raise 4300 Cr to repay the debt it took to buy the company.

So he bought the company using debt from SBI and kept just 1.1% of shares tradable so that the share price got skyrocketed.

Baba Ramdev sold the same shares at 4000% higher valuations than his purchase value. So can one conclude that Baba Ramdev got a 35 thousand crore currently valued the company free of cost? Amount infused by Patanjali when they bought Ruchi Soya through insolvency was just 115 Cr.

So Baba Ramdev/s total investment is 115 Cr, the share price surges, and he sells the inflated shares in the market to pay the 4350 Cr debt he took from SBI. So by a minuscule investment of 115 Cr, today Baba Ramdev is sitting on a 35000 Cr market cap company. What a business!

But as this Adani/Hindenburg fiasco started, Patanjali stock started correcting. Stock price from a peak of Rs 1450 is now lying at Rs 900.

Remember, Adani was also highly interested to buy Ruchi Soya, but Baba Ramdev become successful in acquiring the company for just 115 Cr.

SBI lost 1800 Cr during the haircut, and the same bank again gave a loan to Baba Ramdev to buy Ruchi soya.

Lenders of Ruchi Soya lost 4000 Cr total in the haircut in NCLT.

Here is how Adani lost it to Baba Ramdev

Game of low float. From just 1% free float initially to now 14% Retail investor in Patanjali Ayurved.