Ruchi Soya Earning More Than One Third of Issue, Offer Now Open for Common Investors
Sushmita Goswami | Mar 24, 2022 |
Ruchi Soya Earning More Than One Third of Issue, Offer Now Open for Common Investors
The earnings from Ruchi Soya Industries‘ offer have been great. The company said it has raised Rs 1,290 crore from anchor investors ahead of its follow-on public offering (FPO). The FPO of Baba Ramdev-led Patanjali Ayurved-owned Ruchi Soya Industries is opening on Thursday to raise up to Rs 4,300 crore. It will close on March 28, 2022.
The company on Wednesday offered 1.98 crore equity shares to anchor investors at a price of Rs 650 per equity share. Foreign investors who have received allocation under the anchor investor portion of the FPO include Societe Generale, BNP Paribas, The Sultanate of Oman, Ministry of Defense Pension Fund. , Yas Takaful PJSC (Abu Dhabi-based insurance company) (Yas Takaful PJSC), MK Cohesion, UPS Group and Alchemy.
According to DRHP, Ruchi Soya will utilize the proceeds of the entire issue for furtherance of the company’s business by repayment of certain outstanding debts, meeting its working capital requirements and other general corporate objectives.
The price band of Ruchi Soya’s FPO has been fixed at Rs 615-650 per share. Investors can bid for it till March 28. The bidding for the FPO can be done in lots of 21 shares.
Patanjali’s investment company Ruchi Soya will offer equity shares of Rs 2 face value of Rs 4,300 crore under the FPO. About 10,000 shares will also be reserved for eligible employees for subscription in this issue.
Ruchi Soya first started manufacturing soy food in India in 1980 under the Nutrela brand. With the acquisition by Patanjali Group, Ruchi Soya will benefit from Patanjali’s extensive network in India. This will further strengthen the company’s penetration.
If experts are to be believed, Ruchi Soya has a strong back-up from the Patanjali group and is seeing a change in that company. It has a strong product portfolio and is one of the fully integrated edible oil refining companies in India. The stock is trading with a price to earning multiple of Rs 32, which is lower than the industry average.
Ruchi Soya posted a net profit of Rs 234 crore on revenue of Rs 6,280 crore for the quarter ended December 2021. The company’s market cap at the current market price is around Rs 26,900 crore.
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