Ruchi Soya zooms over 35% in two trading days on heavy volumes

The stock soared 17% to Rs 28 on the BSE in intra-day trade, extending its previous day's 20% rally

Ruchi Soya Industries (RSIL) has soared 17% to Rs 28 on the BSE in intra-day trade, extending its previous day’s 20% rally on back of heavy volumes.

At 11:50 am; the stock was up 14% at Rs 27.45 as compared to 0.35% decline in the S&P BSE Sensex. Trading volumes on the counter surged more than eight-fold with a combined 11.98 million equity shares representing 3.6% of total equity changing hands on the BSE and NSE.

According to media reports, the debt-trapped edible oil company has struck a deal with Baba Ramdev's Patanjali under which the oil produced by RSIL will be branded and sold as Patanjali products.

The Exchange sought clarification from RSIL on Friday with reference to the news that appeared in economictimes.com on January 20, 2017 titled "Ramdev's Patanjali comes to debt-ridden Ruchi Soya's rescue,” the BSE said in a statement.

The reply is awaited.

RSIL had reported a net profit of Rs 28 crore during the first six months (April to September) of the financial year 2016-17 (FY17) as compared to Rs 210 crore to the corresponding half-year period.

The company registered a net loss of Rs 879 crore on a total operating income of Rs 27,805 crore in FY16 (April 1 to March 31), compared with a net profit of Rs 61 crore on a total operating income of Rs 28,402 crore in FY15.

CARE Ratings, the rating agency, on January 10, reaffirmed the bank facilities of the RSIL.

“The reaffirmation of the ratings for the bank facilities of takes into account recent delays in servicing of debt obligations on account of stress on its liquidity on the back of huge loss posted in FY16 and subdued operating performance in H1FY17,” CARE Rating said in a press release.

Ruchi Soya is India’s leading agri and food fast moving consumer goods (FMCG) company with a turnover of $4 billion. It enjoys number 1 position in the cooking oil and soy foods categories of the country. Its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.