Ruchi Soya FPO shares make debut on D-Street

Fresh shares of Ruchi Soya Industries allotted in the recently concluded follow-on public offer (FPO) were admitted to dealing today, 8 April 2022.

A total of 6,61,53,846 shares of the company were admitted for trading on the bourses.

Ruchi Soya's FPO opened for public participation on 24 March 2022 and it closed on 28 March 2022. The FPO comprised of fresh issue of equity shares for an amount aggregating to Rs 4,300 crore. The price band for the offer was fixed at Rs 615-650 per share.

The FPO ended with subscription of 3.60 times on 28 March 2022. However, the Securities and Exchange Board of India (Sebi) directed Ruchi Soya to give the option to investors, who participated in their FPO, to withdraw their bids from 28-30 March. Sebi's directive came amid the circulation of unsolicited SMSes advertising the FPO issue.

Still the FPO concluded sucessfully. The subscription of the offer reportedly came down to 3.39 times on 30 March. Later the shares were allotted at Rs 650 per equity share.

Post FPO, Patanjali's shareholding in the edible oil manufacturer will reduce to 81% while public shareholding will rise to 19%.

The company aims to utlise the proceeds from the issue for repayment/prepayment of Rs 2663.8 crore of borrowings, funding of incremental working capital requirements of Rs 593.42 crore and remaining amount will be used for general corporate purposes.

Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its 'Ruchi Gold' brand has a market leadership position, on account of being India's highest selling palm oil brand and also the pioneers and largest manufacturers of soya foods in India under the brand name of 'Nutrela'. It has launched its nutraceuticals under the joint branding of 'Patanjali and Nutrela'.

Net profit of Ruchi Soya Industries rose 2.92% to Rs 234.07 crore on 40.65% rise in net sales to Rs 6280.46 crore in Q3 December 2021 over Q3 December 2020.

Shares of Ruchi Soya were up 2.09% at Rs 835.95 on the BSE.

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