Ruchi Soya FPO is being launched to meet the Sebi norm of minimum public shareholding of 25% in a listed entity. The promoters, Baba Ramdev-led Patanjali Ayurveda, have to dilute a minimum 9% stake in this round of the FPO
NEW DELHI :
Edible oil firm Ruchi Soya, which is owned by Baba Ramdev-led Patanjali Ayurveda, has filed draft document with Sebi to launch a follow-on public offer (FPO) for raising up to ₹4,300 crore.
The FPO is being launched to meet the Sebi norm of minimum public shareholding of 25% in a listed entity.
As per the Sebi listing rules, the company needs to bring down promoters' stake to achieve the minimum public shareholding of 25% in compliance with the listing requirement under the Securities Contract (Regulation) Rules, 1957.
Ruchi Soya has three years to pare promoters' stake to 75%.
The share price of Ruchi Soya closed at ₹1,242.35 apiece on the BSE on Friday. The market capitalization of the company currently stands at nearly ₹36,800 crore.
In 2019, Patanjali acquired Ruchi Soya, which is listed on stock exchanges, through an insolvency process for ₹4,350 crore.
Ruchi Soya primarily operates in the business of processing of oilseeds, refining of crude edible oil for use as cooking oil, manufacturing of 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. Last month on May 11, Ruchi Soya had announced the acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at ₹60.02 crore.
The objective of the acquisition is to expand the product portfolio of the existing business of the company, it had said.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!