Diversified FMCG firm Ruchi Soya has said it will use the proceeds from its ₹4,300-crore follow-on public offer (FPO) to settle debt of ₹3,300 crore.
The Patanjali-backed firm's FPO, aggregating to ₹4,300 crore will open for bidding on March 24 and close on March 28. However, anchor investors can start bidding from March 23. The issue also includes a reservation of up to 10,000 shares for subscription by eligible employees.
The floor price for the offer has been decided at ₹615- ₹650 per share on the issue, as per the company's regulatory filing on BSE. The firm said the minimum bid will be for 21 shares and in its multiples thereafter.
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.
SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead managers to the issue.
Ruchi Soya claims it is recognized among the largest branded oil packaged food company.
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 has expanded its packaged food portfolio by acquiring the Patanjali product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals and is a part of the Patanjali group, one of India’s leading FMCG and health and wellness companies. On the back of Patanjali group’s over 14 years experience in nutraceutical and wellness products, Ruchi Soya has launched its nutraceuticals under the joint branding of ‘Patanjali and Nutrela’," the company said.
Shares of Ruchi Soya jumped almost 4 percent in early trade on BSE on March 22. The stock traded 3 percent higher at ₹937.35 around 09:40 am on March 22.
