Edible oil sector major Ruchi Soya Industries’ FPO will open on March 24 and close on March 28. In this regard, the company on Saturday said that it has fixed a price band of Rs 615-650 per share for its upcoming follow-on public offer (FPO). However, on Monday, there was a huge fall in the stock of Ruchi Soya. In the morning it saw a fall of Rs 118.05 or 11.75 per cent, after which it was at 886.30. However, later this fall decreased slightly and then it fell by Rs 88.65 or 8.83 per cent to 915.71.

Ruchi Soya’s FPO

Back to the FPO of Ruchi Soya, in an exchange filing, Ruchi Soya said that its issue committee has approved a floor price of Rs 615 per share and a cap price of Rs 650 per share for the FPO. “The minimum bid lot will be 21 and thereafter it will be in multiples of 21 equity shares,” the company said.

In 2019, yoga guru Baba Ramdev-led Patanjali had acquired Ruchi Soya for Rs 4,350 crore through insolvency process. In August last year, Ruchi Soya got capital markets regulator SEBI’s nod for FPOs. Now its follow-on public offer (FPO) is about to come.

The proceeds from the issue will be used by Ruchi Soya for furtherance of the company’s business by repayment of certain outstanding loans, meeting its growing working capital requirements and other general corporate objectives. Presently, promoters hold around 99 per cent stake in the major edible oil company. The company needs to sell at least 9 per cent stake in the FPO.

As per Securities and Exchange Board of India (SEBI) regulations, the promoters’ stake needs to be reduced in order for the company to achieve a minimum public stake of 25 per cent. It has about three years to bring down the promoters’ stake to 75 per cent.