Ruchi Soya Shares Falls 17% as FPO Price Band is Set at Rs 615-650

Ruchi Soya Shares Falls 17% as FPO Price Band is Set at Rs 615-650 Ruchi Soya shares fell as much as 17% in Monday trading before recovering some ground, after the company set the price band for a Rs 4,300 crore follow-on public offer (FPI) at Rs 650-650, a 35% discount to Thursday's closing price. The stock dropped 17.26% to a low of Rs 831 on the BSE. The FPO will open on March 24 in order for the company to meet Sebi's requirement of a minimum public shareholding of 25% in a listed business. This FPO dilution will help Baba Ramdev's Patanjali Ayurveda, which owns Ruchi Soya, meet the minimum shareholding requirements. Patanjali Group currently owns approximately 98.9 percent of Ruchi Soya. Around 1.1 percent of the company is owned by public shareholders. Following the FPO, Patanjali Group's stake in Ruchi Soya will be approximately 81%, with the public holding approximately 19%. The FPO includes a reservation of up to 10,000 equity shares for eligible employees to subscribe to. If such a placement is completed, the size of the follow-on will be reduced.