Ruchi Soya fixes Rs 615-650 price band for its Rs 4,300-crore FPO

Edible oil major Ruchi Soya Industries on Saturday said it has fixed a price band of Rs 615-650 per share for its upcoming follow-on public offer (FPO).

The company's Rs 4,300-crore FPO will open on March 24 and close on March 28.

In an exchange filing, Ruchi Soya said its Issue Committee approved a floor price of Rs 615 per share and cap price of Rs 650 per share for the FPO.

"The minimum bid lot shall be 21 and in multiples of 21 equity shares thereafter," it said.

Ruchi Soya's shares closed at Rs 1,004.45 on the BSE on Thursday. The cap price of Rs 650 translates into a discount of about 35 per cent on Thursday's closing price.

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In 2019, yoga guru Baba Ramdev-led 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. 

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. 

The promoters currently have a nearly 99 per cent stake in the edible oil major. The company needs to dilute a minimum 9 per cent stake in this round of the FPO. 

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. It has around 3 years to pare promoters' stake to 75 per cent. 

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. 

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