Shares of Ruchi Soya fell more 17% intra-day on Monday to hit a daily low of Rs 831 on the BSE.

Diversified consumer company Ruchi Soya Industries will launch its follow-up public offering (FPO) on March 24 to raise Rs 4,300 crore and the offering will close on March 28. The price range of the issue is set between Rs 615 and Rs 650. Also includes a reservation of up to 10,000 shares for eligible employees.

The FPO is primarily intended to reduce the promoter’s interest to 75% according to the standards set by the capital market regulator. Currently, the promoters have a 98.9% stake in the company, while the public share is 1.1%. After the offer, the promoter’s share will fall to 80.8%. “The remaining 5.8% after this FPO will be reduced over the year as we have time until December 2022 and it is enough,” the company’s management said Monday.

The proceeds of the offer will primarily be used to deleverage and the remainder will be used for corporate purposes. “The proceeds of the offer will mainly be used to make the company ‘debt free’. We are currently in debt of about Rs 3,300 crore,” Swami Ramdev, non-executive director, Ruchi Soya Industries, said Monday. He stated that the company is “not just a commodity company anymore” and that he will make Ruchi Soya, Patanjali, a global brand.

In 2019, Patanjali Group had acquired Ruchi Soya through an insolvency process for Rs 4,350 crore. Ruchi Soya is currently active in several sectors: edible oil and by-products, oleochemicals, textured soy protein (TSP), honey and atta and other value-added products.

Shares of Ruchi Soya fell more 17% intra-day on Monday to hit a daily low of Rs 831 on the BSE. The stock closed at Rs 910.10 on Monday. However, the top price range of the Rs 650 FPO is still at a 28% discount from Monday’s closing price.


This post Ruchi Soya’s Rs 4,300 Crore FPO To Open On March 24 was original published at “https://www.financialexpress.com/market/ruchi-soyas-rs-4300-crore-fpo-to-open-on-march-24/2467256/”

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