All Rights Reserved Finance News 2020.
Baba Ramdev’s Ruchi Soya files FPO document to raise up to Rs some,300 crore
NEW DELHI: Consumable oil firm Ruchi Soya, which is held by Baba Ramdev-led Patanjali Ayurveda, provides filed draft document with SEBI to launch a follow-on public offer (FPO) for raising up to Rs some,300 crore. This FPO is being unveiled to meet the SEBI norm of minimum amount public shareholding regarding 25 per cent in the listed entity.
Ruchi Soya filed this draft red sardines prospectus (DRHP) having market regulator SEBI on Saturday, sources stated, adding that the organization plans to raise up to Rs 4,300 crore through the share selling.
They said that this promoters have to dilute a minimum dokuz per cent stake in this particular round of the FPO. The FPO is likely to be to hit the administrative centre market next month right after getting Sebi authorization.
In a company filing, Ruchi Soya said that the issue panel constituted and sanctioned by its aboard has approved bringing up of funds using further public give of equity stocks of the company.
The panel also accredited the DRHP out dated June 12, 2021, for filing having SEBI and a couple of stock exchanges — BSE Limited in addition to National Stock Exchange regarding India Limited.
Promoters group held 98.90 per cent share in the company. In accordance with the SEBI listing regulations, the company needs to bring down promoters’ share to achieve the minimum public shareholding of 25 % in compliance with the listing requirement under the Securities Contract (Regulation) Rules, 1957. Ruchi Soya has three years to pare promoters’ stake to 75 per cent.
The share price of Ruchi Soya closed at Rs 1,242.35 apiece on the BSE on Friday. The market capitalization of the company currently stands at almost Rs 36,800 crore.
In 2019, Patanjali acquired Ruchi Soya, which is listed on stock exchanges, through an insolvency process for Rs 4,350 crore.
Ruchi Soya primarily operates in the business of processing of oilseeds, refining of crude edible oil for use as cooking oil, manufacturing of soya products and value-added products.
The company has an integrated value chain in palm and soya segments having a farm to fork business design. It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.
Last month on May 11, Ruchi Soya had announced the acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs 60.02 crore. The objective of the acquisition is to expand the product portfolio of the existing business of the company, it had said.