Shares of Patanjali Foods fell 3% in early trade on March 20 after the yoga guru Ramdev-backed company denied reports that it was preparing to launch another follow-on public offering (FPO) to trim promoter stakes.

“It has been made clear that Patanjali Foods Limited is not considering another public offering to achieve the minimum public shareholding,” the company said in a release.

Some media reports said the company is preparing for a stock sale in April.

“Investors and shareholders are therefore advised not to rely on any news reports suggesting that the company is undergoing an FPO to achieve the minimum public shareholding,” it said.

The stock exchange froze a total of 292.58 million shares, the filing said. Patanjali Ayurved is one of 21 promoters and promoter group entities to be acted upon.

At 11:30 am, Patanjali Foods was quoted at Rs 877.90 on the BSE, down Rs 18.60, or 2.07%. The stock’s volume was 47,354 shares compared with its five-day average of 26,285 shares, an increase of 80.16%.

CEO Sanjeev Asthana recently told CNBC-TV18 that Patanjali Foods would reach the minimum public shareholding standard within a few months. Dilution will be through promoter tender offers and qualified institutional placement.