Ruchi Soya Industries will once again hit the share market with a INR4300 crore follow-on offer on Thursday. The price band of each share will be INR615 (lower end) to INR650 (higher end).
The shares of Ruchi Soya dropped 10 percent on Monday after company fixed the price band at 35 percent discount on the closing price on last Thursday.
The Monday’s closing price is INR 910 and hence the follow-on offer is seen as a discount.
The company further said that the minimum bid in the follow-on offer will be for 21 shares.
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“We have been directed to liquidate 25 percent equity by December. With the use of the proceeds, our first goal is to make Ruchi Soya debt-free as soon as possible,” Baba Ramdav said in an interview to CNBC-TV18.
The earnings from the FPO will be used to settle outstanding loans as well as meeting working capital requirements, as per a report by CNBC-TV18.
50 percent of the follow-on offer will be allocated to qualified institutional buyers. 15 percent of the offer has been presented to non-institutional-bidders. The rest 35 percent has been reserved for retail investors.
The offer will close on Monday, i.e., 28th March.
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This offer is the first public-offering since the Russian invasion of Ukraine and the associated volatility of the share markets across the world.
Ruchi Soya is India’s largest manufacturer of edible oil in India. In December 2017, Ruchi Soya Industries entered into the Corporate Insolvency Resolution Process because of its massive debt of INR 12000 crore.
In December 2019, Patanjali Ayurved acquired Ruchi Soya for INR 4350 crore. Ruchi Soya Industries is located in Madhya Pradesh.
After acquisition, it was relisted on the Dalal Street at INR 17. Its shares surged to INR 1507 in June 2020.
Post the offer for sale (OFS), Patanjali’s will drop from 98.9 percent to 81 percent.
Ruchi Soya is currently trading at INR 915.05, a 0.54 percent surge from yesterday’s closing.
