Ruchi Soya hits upper circuit on buyout of Patanjali's food retail business

The board also approved to change company's name from Ruchi Soya Industries to Patanjali Foods.

Shares of Ruchi Soya Industries froze at 10 per cent upper circuit and hit over 10-month high of Rs 1,188.60 on the BSE in Wednesday’s intra-day trade. The spike comes after the company announced complete acquisition of Patanjali Ayurved's food business for Rs 690 crore in order to accelerate transition into a leading fast moving consumer goods (FMCG) company. The board also approved to change the company's name from Ruchi Soya Industries to Patanjali Foods.

The stock traded at its highest level since June 30, 2021. Till 15:12 pm; a combined 17.6 million equity shares changed hands with pending buy orders for 350,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.17 per cent at 54,226 points.

“The board approved business transfer agreement with Patanjali Ayurved to acquire the food retail business, which consists of manufacturing, packaging, labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra (“Food Retail Business Undertaking”), as a going concern on a slump sale basis subject to regulatory approvals”, Ruchi Soya said in an exchange filing.

The acquisition of food retail business on a slump sale basis will expand company's existing product portfolio. “The acquisition is valued at a fair market value of Rs 690 crore based on all the fixed assets of food division and respective current assets on slump sale basis,” the company added.