Shares of Ruchi Soya zoomed over 10 per cent to hit an intraday high of Rs 1188.6 on BSE after the company announced the acquisition of the food retail business Acharya Balkrishna’s PatanjalI Ayurved at Rs 690 crore in keeping with its prospectus on the follow-on public offer (FPO) with capital markets regulator SEBI.
"Ruchi Soya Industries Limited has entered into a Business Transfer Agreement with Patanjali Ayurved Limited to acquire the food retail business undertaking of PAL which consists of manufacturing, packaging labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra, as a going concern on a slump sale basis," the company said.
"The transaction will consist of transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs, and copyrights), current assets (excluding debtors, vehicles, cash, and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of PAL," it added.
With a market capitalisation of more than Rs 42,000, the shares are trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Also, now the name of Ruchi Soya will be changed to Patanjali Foods post-acquisition. On April 11, Patanjali-owned Ruchi Soya stated, in a BSE filing, that its board approved the changing of the company name to Patanjali Foods Ltd.
The oil-and-food-products major launched its FPO on March 24 to garner Rs 4,300 crore. Ruchi Soya’s FPO was oversubscribed 3.6 times.
It 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 per cent of the issue, saw a subscription of 90 per cent.
Notably, long-term investors have made big gains by investing in this stock as it has surged over 19,000 per cent in the last three years.