Consumer goods company Ruchi Soya, which is owned by Baba Ramdev’s Patanjali Ayurveda, has launched its follow-on public offer (FPO) to raise ₹4,300 crore with an aim to become a debt-free company.
The price band of the issue, which is closing on March 28, is fixed at ₹615-650 per share. During the FPO launch, Ramdev said there is volatility in the stock market due to the Russia-Ukraine war. However, despite that, Ruchi Soya has decided to launch its FPO cause people believe in the company.
Over Rs1,290 crore have already been raised from anchor investors and the company thinks its FPO will be a huge success as people believe in its products. Ruchi Soya plans to retire a ₹3,300 crore term loan with the help of FPO. “Ruchi Soya will become debt-free,” he asserted.
Also read: Ruchi Soya plans to retire its ₹3,300 crore debt from follow-on public offer proceeds
The company wants to give high returns to its customers, which is why the price band has been kept low. “We have turnaround the Ruchi Soya after acquiring it through insolvency proceedings,” Ramdev said, adding that the previous management committed mistakes and the company had gone bankrupt. “We are running the company with transparency, accountability and corporate governance,” he said.
Ruchi Soya is 98.9 per cent owned by Patanjali Group, while 1.1 per cent is held by the public shareholders. However, after the FPO, Patanjali’s stake in the company will come down to 81 per cent, while 19 per cent to the public shareholders.
About Ruchi Soya:-
In 2019, Patanjali acquired Ruchi Soya for ₹4,000 crore under the corporate insolvency resolution process. Besides repaying the debt to the consortium of lenders, it will also use the proceeds to fund its working capital requirements, and for other general corporate purposes.
Ruchi Soya, which is a major player in the packaged consumer goods space, said had recently said it will diversify its product portfolio. Also, it plans to segregate its food and non-food division, as a part of its restructuring plans.
Ruchi Soya is primarily engaged in the business of processing oilseeds and refining crude oil for cooking. It is also the pioneer and largest manufacturer of soya foods under the brand name of Nutrela with a 40 per cent market share.
It produces oil meal, food products from soya, nutraceutical products, biscuits and value-added products from downstream and upstream processing. Ruchi Soya is engaged in trading in various products and the generation of wind energy.
Also read: Ruchi Soya in focus ahead of ₹4,300 cr FPO; 10 key points to know
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