Making Ruchi Soya debt free is the first goal – Baba Ramdev

Ruchi Soya, controlled by Patanjali Ayurved Group and owned by yoga guru Baba Ramdev, has fixed its follow on public offering (FPO) price of Rs 4,300 crore at Rs 615-650 per share. This FPO will open from 24 to 28 and close on March 28. With this FPO coming this week, the country’s largest edible oil maker will be seen listing in the market after the bankruptcy process.

In an exclusive interview to CNBC-TV18, Baba Ramdev said that we were asked to sell 50 per cent equity of the company by December. The money received from this FPO will be used to make Ruchi Soya debt free at the earliest. The upper end of the price band of this FPO at Rs 650 is 35 per cent below Thursday’s closing price.

The company has said that the medium bid of this FPO will be of 21 shares. After that it will be invested in multiples of 21. The money received from the FPO will be used to repay the outstanding loan of the company. Along with this, this money will be used to meet the working capital requirements of the company and also for other activities.

According to the draft paper of this FPO, the shares will be credited on April 5 and trading will start a day after that. The refund process will start on April 4.

Ruchi Soya first started manufacturing soy food in India in 1980 under the Nutrela brand. With the acquisition by Patanjali Group, Ruchi Soya will benefit from Patanjali’s extensive network in India. This will further strengthen the company’s penetration.