Ruchi Soya to offer 19% shares to public through FPO priced at Rs 615-650

Pantanjali group-owned Ruchi Soya Industries is all set to offer more shares to public with its latest follow-on public offer (FPO) priced in the Rs 615-650 per share range. The follow-on public offering (FPO) of Ruchi Soya will open on Thursday, 24 March 2022 for subscription and will close on 28 March 2022.

The FPO consists of fresh issuance of Equity Shares for an amount aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 Equity Shares for subscription by eligible employees. Through this FPO, Patanjali would dilute 18-19% of stake. Currently, Patanjali Ayurveda holds 98.9% stake in the company.

As per Sebi’s relisting rules for companies coming out of Corporate Insolvency Resolution Process (CIRP), Ruchi Soya will have to dilute promoter’s shareholding by a minimum 25% from their relisting date. The company has till December 2022 to comply with the minimum 25% public shareholding norm.

The company got relisted on the exchange in January 2020 after successful resolution of the CIRP, where Patanjali emerged as the successful resolution applicant.

Ruchi Soya’s FPO issue is being made through the Book Building Process, in compliance with Regulation 129(1) of the SEBI ICDR Regulations, wherein not more than 50% of the offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

The price band of the FPO is at a 33% discount to its current market price of Rs 925 (on 22 March 2022).

Ruchi Soya is one of the largest branded oil packaged food company with a strong portfolio of brands in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed etc. The Company has expanded its packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals and is a part of the Patanjali group, one of India’s leading FMCG and health and wellness company. On the back of Patanjali group’s over 14 years experience in the nutraceutical and wellness products, Ruchi Soya has launched its nutraceuticals under the joint branding of ‘Patanjali and Nutrela’.

Also Read: Post-Ruchi Soya, Sebi rethinks exemptions given to listed CIRP companies