Patanjali-acquired Ruchi Soya aims to raise about Rs 4,300 Cr through FPO being launched on March 24
- ByStartupStory | March 14, 2022
Baba Ramdev-promoted Patanjali Group acquired Ruchi Soya, is set to launch its Follow-On Public Offer (FPO) on March 24. On March 28, the issue will be closed.Through this FPO, a raise of about Rs 4,300 crore has been eyed upon by the edible oil company.
A statement states that the equity shares of face value of Rs 2 each aggregating to Rs 4,300 crore is composed in the FPO. A reservation of up to 10,000 equity shares is also included in the issue for subscription by eligible employees. The follow-on size will be reduced, if such placement is completed
In order to help the company meet SEBI’s minimum public shareholding of 25 percent in a listed organisation, the forthcoming of the FPO is also intended for it. The company expects that in order to reduce advertiser’s stake to 75 percent it will take three years.
Ruchi Soya, acquired by Patanjali Group for Rs 4,350 crore through an insolvency process, with the rest held by public shareholders while public shareholders the remaining 1.1 percent, currently owns 98.9 percent of the edible oil organisation.
Patanjali’s holding in Ruchi Soya is likely to drop down to around 81 percent, and the rest to be owned by public investors, post the FPO.
The proceeds from the issue for, Among other things, the proceeds from the issue is expected to be used by the company for reimbursement of due loans, and other than general corporate purposes to meet its incremental working capital needs.
In June 2021, its draft red herring prospectus (DRHP) was filed by Ruchi Soya and received SEBI’s approval so as to launch the FPO in August.
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