Lawstreet Journal

Baba Ramdev’s Ruchi Soya files FPO document with SEBI to raise Rs. 4,300 crores

Lawstreet Journal 16 Jun 2021 1:03am

Image courtesy: Lawstreet Journal Business Baba Ramdev’s Ruchi Soya files FPO document with SEBI to raise Rs. 4,300 crores

Edible oil firm Ruchi Soya, which is owned by Baba Ramdev-led Patanjali Ayurveda, has filed draft document with SEBI to launch a follow-on public (FPO) offer for raising up to Rs. 4,300 crores. The FPO is being launched to meet the SEBI norm of minimum public shareholding of 25 percent in a listed entity.

In a regulatory filing, Ruchi Soya said that the issue committee constituted and authorised by its board has approved raising of funds by way of further public offer of equity shares of the company. The panel also approved the DRHP dated June 12, 2021, for filing with SEBI and two stock exchanges, viz., Bombay Stock Exchange Limited and National Stock Exchange of India Limited. 

As per the SEBI listing rules, the company needs to bring down promoters' stake, which was previously 98.90 percent, to achieve minimum public shareholding of 25 percent in compliance with the listing requirements as per the Securities Contract (Regulation) Rules, 1957. Ruchi Soya has three years to pare promoters' stake to 75 percent.

The market capitalization of the company currently stands at nearly Rs 36,800 crore. In 2019, Patanjali acquired Ruchi Soya, which is listed on stock exchanges, through an insolvency process for Rs 4,350 crore.

On May 11, 2021, Ruchi had announced the acquiring of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs 60.02 crore. The company in its statement stated that the objective of the acquisition is to expand the product portfolio… Continue Reading...

Tagged: Baba Ramdev  
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