Rs. 4300 Crore FPO for Patanjali’s Ruchi Soya
Ruchi Soya Industries Ltd, which is a part of Baba Ramdev co-founded Patanjali Group, has filed its draft with the SEBI to raise upto Rs. 43000 crore through an FPO (Further Public Offering).
In 2017, the Ruchi Soya was dragged into Insolvency and Bankruptcy Code (IBC) proceedings, with over Rs. 12000 crore. Then, in the year 2019, Pantanjali acquired it for Rs.4350 crore via the National Company Law Tribunal (NCLT) resolution process.
Currently, the Ruchi Soya is a major FMCG and integrated oil refining company in the sector of edible oil. In terms of the palm plantation allocations, Ruchi Soya is one of the biggest and largest players having around 2,55,207 hectares of potential land, which is spread across 9 states.
50% of the issue size will be on offer to the Qualified Institutional Buyers (QIBs), 35% to the Retail Individual Investors (RIIs) and 15% to the Non-Institutional Investors (NIIs).
The issue has been proposed as a pure fresh issue, and thus, the entire FPO proceedings will be used by the business of the company by repayment of some outstanding loans and also meet the incremental working capital requirements and some other corporal needs.
Therefore, 50% of the issue size will be on offer to Qualified Institutional Buyers (QIBs), 15% to the Non-Institutional Buyers (NIBs) and 35% to the Retail Individual Investors.