Ruchi Soya Board Approves Rs 4300 Crore FPO

Patanjali Ayurveda Led-Edible oil Major Ruchi Soya Ltd said that its Rs 4,300 crore follow-on public offer (FPO) will open on 24 March 2022 and close on 28 March 2022.

This FPO dilution will aid Baba Ramdev's Patanjali Ayurveda, which owns Ruchi Soya, in adhering to the minimum ownership rules. The proceeds of the offering will be utilized to expand the company's operations by repaying outstanding loans, meeting incremental working capital requirements, and other general corporate reasons.

Ruchi Soya was able to benefit from Patanjali's pan-India distribution network, strong technical know-how in the FMCG and FMHG sectors in India, and group synergies across the Patanjali Group as a result of the purchase.

The company obtained approval from the capital markets regulator Security Exchange Board of India (SEBI) to launch the FPO in August of last year. In June 2021, it filed a draught red herring prospectus (DRHP).

Ruchi Soya received SEBI clearance in August 2021. Patanjali purchased the firm in 2019 for Rs 4,350 crore through an insolvency and bankruptcy code procedure for its Nutrela line of goods.

On January 27, 2020, Ruchi Soya shares were relisted at Rs 16.10 a share and soared around its 52 weeks high of Rs 1,378 on June 9, 2021. On the BSE, it is currently trading at Rs 803.70, up 0.16 percent from its previous finish.

About The company Operations and Products

Ruchi Soya is the pioneer of soya foods in the country under the brand name Nutrela. The Nutrela brand was launched by the company back in the 1980s. Mahakosh, Sunrich, Ruchi Gold, and Nutrela are some of the company's brands.

Ruchi Soya principally engages in the processing of oilseeds, the refinement of crude edible oil for use as cooking oil, the production of soya products, and the development of value-added goods. With a farm to fork business strategy, the company has an integrated value chain in the palm and soya divisions.