Edible oil firm Ruchi Soya may come out with a follow-on public offer (FPO) towards the end of February to raise Rs 4,300 crore. Ruchi Soya is owned by Patanjali Ayurveda, headed by Baba Ramdev. News agency PTI has given this information quoting sources.
Let us inform that Ruchi Soya was approved by the market regulator SEBI in August last year to bring in FPO. The company had submitted draft papers for this with SEBI in June 2021.
As per SEBI norms, listed companies should have minimum 25 per cent public shareholding. To fulfill this rule, Ruchi Soya is bringing an FPO of Rs 4,300 crore. According to sources, the preparations for the company’s FPO are in the final stage and it can be launched by the end of February.
According to the draft paper, the entire amount received from the FPO will be used to enhance the business of the company, clear some outstanding loans and meet the working capital requirements.
Ruchi Soya was bought by Patanjali Ayurved for Rs 4,350 crore in the year 2019 through an insolvency process. Even at the time of insolvency process, Ruchi Soya was a listed company on the stock exchange. Presently, the promoters hold 99 per cent stake in the company. The company has to bring at least 9 percent of its stake to public shareholders in this round of FPO.
Under SEBI rules, promoters get up to three years to bring down their stake to 75 per cent. Shares of Ruchi Soya closed at Rs 843.25 per share, up 4.08 per cent on Friday, February 11.