The follow-on public offering (FPO) of Ruchi Soya was subscribed 3.6 times on last day of the issue today. The FPO received bids for 17.56 crore equity shares against the size of 4.89 crore equity shares on the final day. The retail quota, which constitutes 35% of the issue, saw subscription of 88%.
The company had allocated half of the offer for qualified institutional buyers and 15 percent for non-institutional investors. Their portions received 2.2 times and 11.75 times bids, respectively. Employees submitted bids for 78,708 equity shares against the 10,000 shares reserved for them.
The Patanjali-backed company had already collected Rs 1,290 crore through the anchor book, out of the total fundraising aim of Rs 4,300 crore.
Ruchi Soya FPO to open on March 24; here's what brokerages have to say
The oil and food products majors launched its FPO on March 24 to garner Rs 4,300 crore. The company fixed a price band of Rs 615-650 for the public offer.
Meanwhile, shares of Ruchi Soya closed 5.96% lower at Rs 815.05 on BSE on Monday. The share fell to intra day low of Rs 783.45, down 9.61% on BSE.
The stock has lost 10.74% in the last four sessions.
The dilution through the FPO would help Baba Ramdev-led Patanjali Ayurveda, which owns Ruchi Soya, to adhere to the minimum shareholding norms. In August 2021, the firm had received capital markets regulator Sebi's go-ahead to launch the FPO.
Ruchi Soya will be debt-free by April, 2022: Ramdev
It had filed the draft red herring prospectus (DRHP) in June 2021. 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.