Financial Insights

Ruchi Soya looking to raise Rs 4,300 crores through FPO

Patanjali owned Ruchi Soya Industries Ltd. is looking to raise Rs 4,300 crores through a Further Public Offer.

The company was incorporated in 1986 and is one of the top players in FMCG. It offers a variety of edible oils and soya foods. It owns 22 manufacturing facilities and has a refining capacity of 11,000 tonnes per day. The company was facing a staggering debt of Rs 12,000 crores when it was delisted and acquired by Patanjali Industries through the NCLT in 2019.

The FPO comprises of 6.6 crore shares at a price of Rs 615-650. This values the company at Rs 23,130 crores, significantly lower than its current market cap. The company expects nearly 80% of its existing debt to be repaid by the proceeds. This FPO dilution will also aid Patanjali Industries adhere to the minimum shareholding rules.

However, the price range was not correct as it was at a discounted price, causing the scrip to fall over 17% to touch a low of Rs 805. However, the decline saw recovery and the share currently trades at Rs 916.

Highlight by Aman Agarwal.

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