BackRuchi Soya FPO subscription remains tepid on second day at 30%
Overall, the Ruchi Soya FPO got bids for 1.52 crore equity shares against an offer size of 4.89 crore shares
PremiumBaba Ramdev-led Patanjali Ayurved-owned Ruchi Soya's follow-on public offer (FPO) received a tepid for the second consecutive day. The issue was subscribed 0.3x or 30% on Day 2, driven by institutional buying. On the first day, it was subscribed just 12%.
The retail investors part was subscribed 34%, while the Qualified Institutional Buyers (QIB) part received bids for 41%. Meanwhile, there was no interest from the non-institutional investors, the part which has seen just 9% subscription.
Overall, the Ruchi Soya FPO got bids for 1.52 crore equity shares against an offer size of 4.89 crore shares. The issue was launched on 24 March will stay open till 28 March.
On Friday, Ruchi Soya shares were down marginally at ₹872 apiece on NSE.
Ruchi Soya hit the capital market to raise ₹4,300 crore through its FPO as it aims to become a debt-free company. The price band has been fixed at ₹615 to ₹650 per share.
Ramdev said the company has launched its FPO despite volatility in the stock market because of the war between Russia and Ukraine. He said the company has already raised ₹1,290 crore from anchor investors on Wednesday and expressed confidence that its FPO would be a huge success as people have faith in its products and brand.
Ramdev said the proceeds of the FPO would be utilised to retire the term loan of ₹3,300 crore.
Currently, Patanjali Group owns about 98.9% stake in Ruchi Soya. Public shareholders own about 1.1%. Post the FPO, Patanjali Group's holding in Ruchi Soya will come down to about 81%, and the public will hold about 19%.
The firm is coming out with the public issue to meet Sebi's norm of minimum public shareholding of 25% in a listed entity. It has around three years to pare promoters' stake to 75%. In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for ₹4,350 crore.
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 like Mahakosh, Sunrich, Ruchi Gold and Nutrela.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
