Ruchi Soya Firm, an edible oil firm owned by Baba Ramdev’s company Patanjali Ayurved, is going to announce its follow-on issue offers (FPO) on March 24. Under this scheme has been made to raise Rs 4,300 crore.
In a regulatory filing late Friday, Ruchi Soya said a board committee has approved the red herring prospectus (RHP). The bidding for which will be held or issued on March 24, 2022 and will be closed on March 28, 2022. Let us tell you that in August last year, this company got the approval of capital markets regulator SEBI to launch an FPO. It had filed a draft red herring prospectus (DRHP) in June 2021.
where will it be used
According to the DRHP, Ruchi Soya will use it to further the company’s business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate objectives.
Patanjali had acquired in 2019
In 2019, Patanjali bought Ruchi Soya through an insolvency process for Rs 4,350 crore. The mountaineers of the company hold about 99 per cent stake. The company needs to sell at least 9 per cent stake in this round of FPO.
What is SEBI’s rule
As per SEBI norms, the promoters’ stake will have to be reduced for the company to get at least 25 per cent public shareholding. It has about three years to bring down the promoters’ stake to 75 per cent.