Patanjali-backed Ruchi Soya is set to open its follow-on public offer (FPO) to raise a whopping ₹4,300 crore. The firm on Sunday announced the issue price for the offer, which is set to open on March 24 and end on March 28, reported Moneycontrol.
The floor price for the offer has been decided at ₹615- ₹650 per share on the issue, added the report. It also stated that the higher end of the price band – ₹650 a share – represents a 35 percent discount from Thursday's closing price. The firm said the minimum bid will be for 21 shares and in its multiples thereafter.
The report further informed that the proceeds from the FPO will be used for repaying certain outstanding loans, meeting incremental working capital requirements and other general corporate purposes.
Ruchi Soya, which got approval for the FPO in August 2021, was acquired by Patanjali for its Nutrela brand of products in 2019 for ₹4,350 crore through the insolvency process.
The company will offer equity shares with a face value of ₹2 each amounting to ₹4,300 crore under the FPO, it said. The issue will also include a reservation of about 10,000 equity shares to eligible employees for a subscription.
Through the FPO, promoters of the company seek to reduce their shareholding to comply with Sebi's guidance. Currently, under the Sebi direction, the minimum requirement for a public shareholding in a listed company should be 25 percent.
Currently, Patanjali owns 98.9 percent in the firm while public shareholders own only 1.1 percent. Post the FPO, Patanjali's shareholding in the edible oil manufacturer will reduce to 81 percent while public shareholding will rise to 19 percent.
Ruchi Soya pioneered soya foods in India under the Nutrela brand in the 1980s.
