Debt-ridden Ruchi Soya's resolution is complete with Yoga guru Baba Ramdev's Patanjali Ayurved depositing Rs 1,100 crore equity in a State Bank of India (SBI) escrow account to acquire the edible oil maker for Rs 4,350 crore.
Patanjali completed the payment to lenders on Wednesday. The remaining money will be paid through bank loans.In April, Patanjali had received approval of financial creditors to acquire Ruchi Soya. The National Company Law Tribunal (NCLT) gave its approval to the resolution plan in early September.
Sources said Patanjali has settled Rs 4,350 crore of dues Ruchi Soya had towards financial creditors by infusing Rs 1,100 crore equity and arranging another Rs 3,250 crore via debt.
The acquisition will help Patanjali acquire edible oil plants and soyabean oil brands like Mahakosh and Ruchi Gold.
Out of the Rs 4,350 crore offered by Patanjali group, Rs 4,235 crore will be utilised to pay creditors while Rs 115 crore will be used for capital expenditure and working capital requirements of Ruchi Soya.
Ruchi Soya is the second big insolvency case to be completed this week. The world's largest steelmaker ArcelorMittal and Japan's Nippon Steel on Monday completed the acquisition of Essar Steel for Rs 42,000 crore.
Patanjali Ayurved is a consumer goods company with manufacturing units at Haridwar in Uttarakhand. It manufactures mineral and herbal products.
.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app