The FPO (Follow-on Public Offering) of Yogguru Ramdev’s company Ruchi Soya has been listed on the Indian stock market. The investors who were allotted FPOs also got huge benefits with the listing.
Current in Friday’s business: Shares of Ruchi Soya jumped 7.77 per cent to Rs 882.55 per share on the BSE. On the NSE, the shares of this company jumped 8.23 percent in early trade and reached a price of Rs 885.
Clients who got Ruchi Soya shares through the FPO allotment process have received a premium of over 30 per cent. At present, the share price of Ruchi Soya is at a level of Rs 840 on the BSE index. Talking about the market capital, it is more than 30,400 crores.
How far will the price go: Speaking on the Ruchi Soya FPO listing, Ravi Singhal, Vice Chairman, GCL Securities said, “Those who have received shares of Ruchi Soya during the allotment are advised to book 50 per cent profit and keep the rest for 3 months. Target Rs 1,000. A stop loss is suggested at Rs 740 per share.”
Ravi Singhal of GCL Securities said raw material prices in the FMCG segment are rising and the company has a good buffer stock which will give margin gains in the near term. Hence, the company expects strong quarterly results in the short term.
On the other hand, Santosh Meena, Research Head, Swastika Investmart Limited said that some selling pressure may be seen in the share price of Ruchi Soya on an immediate basis. Therefore, investors who have applied for arbitrage benefits should book profits and exit. Long term investors may stay put as many positive things are going on for the company.
Read this-Ramdev’s competition to sell shares with Ruchi Soya, selling atmosphere after FPO
FPO Details: Let us tell you that Rs 4,300 crore FPO of Ruchi Soya Limited was opened on 24 March. Through this the company wants to become debt free. The company’s FPO closed on March 28 and the price range was fixed at Rs 615-650 per share. The board of directors of the company had approved the issue price to be fixed at Rs 650 per share.