Ruchi Soya gets Sebi's approval for Rs 4,300 crore FPO, say reports

Ruchi Soya on Monday got market regulator Securities and Exchange Board of India’s (Sebi) approval for its Rs 4,300 crore follow on public offer (FPO), according to reports.

 

The company had filed its draft documents with the markets regulator in June this year for an FPO.

 

 According to its draft documents, the issue’s net proceeds will be utilised to repay its borrowings and fund incremental working capital requirements.

 

The company also wants to meet Sebi's minimum public shareholder norms. According to the regulator’s norms, a listed entity should have at least 25 per cent minimum public shareholding.

 

The company has time until December 2022 to dilute its stake to 75 per cent. As of June 2021, promoters hold a 98.90 per cent stake in the company.

 

Patanjali Ayurveda had acquired the company in 2019 through the insolvency process. Ruchi Soya is one of the largest FMCG companies in the Indian edible oil sector. And primarily operates in the business of processing of oilseeds, refining edible, and manufacturing soya products.