Shares of Ruchi Soya declined more 17% intra-day on Monday to hit a day’s low of Rs 831 on the BSE.
Diversified consumer company Ruchi Soya Industries will launch its follow-on public offering (FPO) on March 24 to raise Rs 4,300 crore and the offer will close on March 28. The price band of the issue is set between Rs 615 and Rs 650. It also includes a reservation of up to 10,000 equity shares for eligible employees.
The FPO is primarily to bring down the promoter stake to 75% as per norms stated by the capital market regulator. Currently, the promoters hold a 98.9% stake in the company, while the public shareholding is at 1.1%. Post the offer, the promoter shareholding will decline to 80.8%. “The remaining 5.8% after this FPO will be reduced during the course of the year as we have time till December 2022 and it is adequate,” the company’s management said on Monday.
The proceeds from the offer will be primarily used to reduce debt, and the rest will be used for corporate purposes. “Proceeds from the offer will be primarily used to make the company ‘Debt-Free’. We currently have a debt of around Rs 3,300 crore,” Swami Ramdev, non-executive director, Ruchi Soya Industries, said on Monday. He stated that the company is ‘not just a commodity company’ anymore and that he will make Ruchi Soya, Patanjali, a global brand.
Back in 2019, Patanjali Group had acquired Ruchi Soya through an insolvency process for Rs 4,350 crore. Ruchi Soya currently operates in different spaces — edible oil and by-products, oleochemicals, textured soya protein (TSP), honey and atta, and other value-added products.
Shares of Ruchi Soya declined more 17% intra-day on Monday to hit a day’s low of Rs 831 on the BSE. The stock closed at Rs 910.10 on Monday. However, the upper price band of the FPO of Rs 650 is still at a 28% discount against the Monday’s closing price.