Yoga guru Baba Ramdev’s company used the funds raised from the FPO (Follow on Offer) to repay the bank loan of Ruchi Soya. Due to his move, the company has now become completely debt free. The market has welcomed his move. The company’s stock has registered a strength of about 18 percent.
Acharya Balkrishna, MD, Patanjali Ayurved Limited, tweeted that Ruchi Soya has now become a completely debt free company. The company had told SEBI that it would repay the debt of Rs 1950 crore from the funds raised from the FPO. He said that now Ruchi Soya has repaid its entire debt of Rs 2,925 crore. The company had recently raised 43 hundred crores from FPO. The company had brought FPO only for the purpose of repaying its debt. The money has gone to the State Bank-led consortium. Apart from SBI, this includes Punjab National Bank, Union Bank of India, Syndicate Bank and Allahabad Bank.
After the allotment of FPO of Ruchi Soya was finalized, the stock had slipped by about 19 per cent in early trade. This created panic among investors. On Tuesday, it closed at Rs 875.45 on the BSE and on Wednesday it opened at a low of Rs 706.00 at the beginning of trading. The company’s shares are seeing a jump after the loan is repaid. That is, Ramdev’s move was successful.
In 2019, Patanjali Ayurved had acquired Ruchi Soya for Rs 4,350 crore. Adani Group was also involved in the race to buy this company but later decided to back down. During that time, there was apprehension among the people about how Ramdev’s company would turn the business of Ruchi Soya facing crisis into profit. But in later days Patanjali got a lot of profit from Ruchi Soya. Acharya Balkrishna is the chairman on the board of Ruchi Soya. At the same time, Yogaguru Ramdev is the non-executive director and his brother Ram Bharat is the managing director.