Ruchi Soya FPO: Yoga guru Ramdev’s Patanjali group company Ruchi Soya has launched its follow-on public offering (FPO). As of 1 pm on the first day of launch, the issue was subscribed close to 8 per cent. Of these, total applications came for 36,90,183 shares as against 4,89,46,260. The company will raise Rs 4,300 crore through this FPO.
What did Ramdev say: During the FPO launch, yoga guru Ramdev said that there is volatility in the stock market due to Russia-Ukraine war. However, despite this, Ruchi Soya has decided to launch its own FPO as people have faith in the company. According to Ramdev, the company is working on a debt-free plan through FCO. Let us tell you that over Rs 1,290 crore has already been raised from anchor investors and the company feels that the FPO will be a big success.
Issue Price of FPO: The price band of the FPO closing on March 28 has been fixed at Rs 615-650 per share. To this Ramdev said that the company wants to give higher returns to its customers, which is why the price band has been kept low. Ramdev said, “We have replaced Ruchi Soya after acquiring it through insolvency proceedings. The previous management made mistakes and the company went bankrupt. We are running the company with transparency, accountability and corporate governance. ”
How much is the stake: Ruchi Soya holds 98.9 per cent stake in Patanjali Group, while 1.1 per cent is held by public shareholders. However, after the FPO, Patanjali’s stake in the company will come down to 81 per cent, while public shareholders will have 19 per cent.
Approved in 2021: The Securities and Exchange Board of India (SEBI) had approved the FPO of Ruchi Soya in August 2021. It is mandatory to bring an FPO in any listed company to fulfill the regulatory condition of minimum 25 per cent public stake. The company has about three years to bring down the promoter stake to 75 per cent.
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In 2019, Patanjali had acquired Ruchi Soya as part of the corporate insolvency resolution process. Its flagship brands include Mahakosh, Sunrich, Ruchi Gold and Nutrela.