Patanjali IPO next Year? Here’s what baba Ramdev Says. Also know who owns Patanjali !

This is the IPO which may become IPO of year 2019. Baba Ramdev just hinted that Patanjali may be listed as early next few months. As per PTI, when asked about Patanjali Ayurved’s listing, Baba Ramdev said he would be able to share some “good news” in a month’s time.

This would be in stark contrast to his earlier stance in October 2018 wherein, Ramdev has said that neither he wants to go for foreign equity nor stock exchange listing as Patanjali is a charitable firm.

Patanjali Ayurved has grown at rapid speed in last 5-6 years, so much to challenge the market dominance of MNC FMCG firms like HUL. The company has grown to Rs 10,000 crores in revenue in FY16 from just Rs 500 crores few years back. However in year ended Mar 2018, Patanjali posted a 10%+ fall in revenue to earn little over Rs 8148 crores. This fall was attributed to inability to implement GST smoothly and execution bottlenecks in distribution.  

Patanjali Ayurved targets to pip Hindustan Unilever Limited (HUL) as top FMCG company, in terms of turnover, by FY2020, and become world’s largest FMCG brand by 2025,

To achieve this target Patanjali would deploy mix strategy of organic and inorganic growth. It will acquire some bankrupt assets and at same time will grow organically by boosting its manufacturing and supply chain capabilities.

About Patanjali

Baba Ramdev established "Patanjali Ayurved" Limited in 2006 along with Acharya Balkrishna. It’s objective was of establishing science of Ayurvedic accordance and coordination with the latest technology and ancient wisdom. (wiki)

Who owns Patanjali

Now comes the BIG question. Who owns Patanjali? If Patanajli is listed today, then it would be worth some $6-7 billion dollars or more Rs 40,000 crores. This will make its top shareholder a billionaire. So is it Baba Ramdev? The answer to this question is a big NO. Contrary to popular perception, baba Ramdev doesn’t own a single share in Patanjali Ayurved.

Acharya Balkrishna owns 93.7% of Patanjali Ayurved. According to forbes he has a net worth of US$5.4 billion as on December 2018. With his riches he would rank 25^th in India Rich list (2018) and 274^th on Global rich list. NRI couple Sarwan and Sunita Poddar owns 6% shareholdings. They have given him first loan to start this business. 

image courtesy: ET