Edible oil major Ruchi Soya Industries on Wednesday said it has raised Rs 1,290 crore from anchor investors, including major foreign investors, ahead of its follow-on public offer (FPO) which will open on Thursday. The Rs 4,300-crore FPO of the company, backed by yoga guru Baba Ramdev-led Patanjali, will open on Thursday and close on Monday. It has fixed a price band of Rs 615-650 for the public offer. Ruchi Soya allocated 1.98 crore equity shares to anchor investors, including domestic mutual funds and foreign investors. The FPO will comprise of fresh issuance of equity shares without any offer for sale component. Societe Generale, BNP Paribas, The Sultanate of Oman - Ministry of Defence Pension Fund, YAS Takaful PJSC and Alchemy are amongst the foreign investors who were allotted shares under the anchor investor portion. Among domestic investors, Aditya Birla Sun Life, HDFC Life Insurance, UTI Mutual Fund, SBI Life Insurance got allocations. The minimum bid lot for the FPO will be 21 and in multiples of 21 equity shares thereafter. Ruchi Soya will utilise the entire issue proceeds for furthering the company's business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes. Also Read: Ruchi Soya FPO to open tomorrow; here's what brokerages have to say
In 2019, Patanjali had acquired Ruchi Soya through an insolvency process for Rs 4,350 crore. In August last year, Ruchi Soya received capital markets regulator SEBI's nod for the FPO. The promoters currently have a nearly 99 per cent stake in the edible oil major. As per the Securities and Exchange Board of India (SEBI) rules, the company needs to bring down promoters' stake to achieve the minimum public shareholding of 25 per cent. At the upper end of the FPO, Patanjali will dilute around 19 per cent stake, and 18 per cent at the lower end of the price band. The remaining 6-7 per cent, to meet the mandatory 25 per cent public float, will be diluted before the Sebi deadline of December 2022. Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil, manufacturing soya products, and value-added products. The company has an integrated value chain in palm and soya segments having a farm to fork business model. It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.
Also Read: Will make Ruchi Soya, Patanjali global brands: Baba Ramdev