Patanjali Foods is on one wild ride today. The stock opened 5% higher at Rs.1750.05 and went on to hit a new 52-week high at Rs.1769.15 but from there, profit booking pulled it down by 1.5% to Rs.1677.55 and is now trading in the red at Rs.1686.30.

The stock price soared on its announcement that its Board approved acquisition of the entire nom-food business of Patanjali Ayurved for Rs.1100 crore. This amount will be paid in five tranches – first two 20% each, third 45%, fourth 10% and fifth 5%.

This non-food business includes haircare, skincare, dentalcare, and homecare.

The company will also buy Patanjali Ayurved's moveable assets, immovable properties, assumed liabilities, contracts, licenses, books, and records.

It has also entered into a license agreement with Patanjali Ayurved to obtain rights to use the latter's licensed intellectual properties for which it will receive a License fee at 3% of the actual gross sales value’ of the products (as defined in the License Agreement).

Acharya Balkrishna, one of the promoters and Chairman of the company is Managing Director of Patanjali Ayurved and holds 98.54 % of its paid-up equity share capital.