Yoga guru Baba Ramdev’s Patanjali Ayurved has hired two investment banks to raise structured credit worth Rs1,000 crore, two people aware of the development said.

One of the two investment banks is a Hyderabad-based boutique firm specializing in the consumer packaged goods segment, the people mentioned above said on condition of anonymity, adding that the banks have been asked to approach both foreign and domestic funds.

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In August, Patanjali had announced its intention to borrow Rs1,000 crore to finance its expansion plans.

“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,” the first of the two persons cited above said.

Along with the typical interest payment associated with debt, structured credit may include an equity stake in the form of attached warrants or a conversion feature similar to that of a convertible bond.

A Patanjali spokesperson did not respond to emails and phone calls on Wednesday.

The second person stated that Patanjali has a comfortable liquidity position, adding, “Compared to conventional bank credit, a structured credit investment which typically is debt with an equity upside will give Patanjali more flexibility over the repayment structure and tenor, as well as over the use of the funds.”