Patanjali-backed Ruchi Soya Industries has raised Rs 1,290 crore from anchor investors ahead of its further public offering (FPO), which opens for public subscription today.
Patanjali-backed Ruchi Soya Industries has raised Rs 1,290 crore from anchor investors ahead of its further public offering (FPO), which opens for public subscription today, 24 March 2022. The FPO consists of fresh issuance of equity shares for an amount aggregating to Rs 4,300 crore. The firm has allocated 1.98 crore equity shares at the upper price band at Rs 650 per equity share to anchor investors such as Societe Generale, BNP Paribas, The Sultanate of Oman – Ministry of Defence Pension Fund, among others.
The Baba Ramdev-led Patanjali Ayurved owns 98.9 per cent stake in Ruchi Soya. Some of the other foreign investors who have been given allotment under the anchor investor portion of the FPO are Takaful PJSC (an Abu Dhabi based insurance company), MK Cohesion, UPS Group and Alchemy. Among domestic investors, ASK Investments, Volrado Ventures, Kotak Mutual Fund, SBI Pension Fund, UTI Mutual Fund, Aditya Birla Sun Life Mutual Fund, Quant Mutual Fund, Winro Commercial, HDFC Life Insurance, SBI Life Insurance and Authum Investments have got the allotment.
Ruchi Soya FPO: Should you subscribe? Here’s what analysts say
Ruchi Soya is a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well recognised brands having pan India presence. Ruchi Soya is one of the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining companies in India. Analysts at Hem Securities have recommended to ‘subscribe’ to the Ruchi Soya FPO. It said that Company’s price band is at P/E multiple of 28x on pre issue FY21 eps basis. Ruchi Soya with upstream and downstream integration is one of the key players in oil palm plantation and has developed an effective strategy to procure the key raw materials required for business, analysts added.
Analysts at Marwadi Financial Services have also given a ‘subscribe’ rating to the FPO, as the company is one of the key players in Oil Palm Plantation with upstream and downstream integration and enjoys strong brand recognition in the Indian market. Also it is available at reasonable valuation as compared to its peers and reasonable discount to its current market price “Considering the FY21 EPS of Rs.18.81 on a post issue basis, the company is going to list at a P/E of 34.56x with a market cap of Rs.235,297 mn whereas its peers namely Agro Tech and Marico are trading at PE of 96.26x and 54.62x,” it said.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for the retail investors and the remaining 15 per cent is for non-institutional bidders. The applicants also must note that the cut-off time for UPI mandate confirmation is Tuesday, March 29, 2022, upto 12:00 pm. If they fail to do so then their application may not be considered.
The stock recommendations in this story are by the respective research analysts and brokerage firms. TheSpuzz Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.