Ruchi Soya FPO: The follow-on public offer (FPO) of Baba Ramdev’s company Ruchi Soya is opening on March 24 for Rs 4,300 crore. Edible oil sector major Ruchi Soya Industries on Saturday said it has fixed a price band of Rs 615-650 per share for the FPO. This FPO will close on March 28.
What did the company say?
In an exchange filing, Ruchi Soya said that its issue committee has approved a floor price of Rs 615 per share and a cap price of Rs 650 per share for the FPO. “The minimum bid will be in lot 21 and in multiples of 21 equity shares thereafter,” the company said. Let us inform that on Thursday, the shares of Ruchi Soya closed at Rs 1,004.45 on the BSE. A cap price of Rs 650 translates into a discount of around 35 per cent over Thursday’s closing price.
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Patanjali had acquired
In 2019, yoga guru Baba Ramdev-led Patanjali had acquired Ruchi Soya through an insolvency process for Rs 4,350 crore. In August last year, Ruchi Soya got capital markets regulator SEBI’s nod for FPOs. Ruchi Soya will use the proceeds of the entire issue for furtherance of the company’s business by repayment of certain outstanding loans, its increasing working capital requirements and meeting other general corporate objectives.
The company will sell 9 percent stake
Presently, promoters hold around 99 per cent stake in the major edible oil company. The company needs to sell at least 9 per cent stake in this round of FPO.
As per Securities and Exchange Board of India (SEBI) regulations, the promoters’ stake needs to be reduced in order for the company to achieve a minimum public stake of 25 per cent. It has about three years to bring down the promoters’ stake to 75 per cent.
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company business
Ruchi Soya is primarily engaged in the business of processing oilseeds, using crude edible oil as cooking oil, manufacturing of soya products and value added products. The company has an integrated value chain in the Palm and Soya segment with a farm to fork business model. It has brands like Mahakosh, Sunrich, Ruchi Gold and Nutrella.