Ruchi Soya FPO: stock of Ruchi Soya The industry jumped 8 per cent to Rs 883 on the BSE in Friday’s intra-day trade, rising 8.5 per cent on Thursday after 66.15 million equity shares were allotted in a follow-on public offering.FPO) started trading on the exchanges from today. The stock of Ruchi Soya opened at Rs 850 with a gain of 3.8 percent against the previous close of Rs 818.85 on the BSE.
However, in the past one week, the edible oil company’s stock has underperformed the market with a fall of 12 per cent against a one per cent rise in the benchmark index.
On 5th April 2022, Ruchi Soya As per the FPO issue, the allotment of 66.15 million equity shares was approved for a total amount of Rs 4,300 crore. The company had fixed the issue price at Rs 650 per share. The company said that after the allotment of equity shares in the issue, the paid-up equity share capital of the company has increased from Rs 59.16 crore to Rs 72.40 crore.
The new issue is aimed at repayment/prepayment of borrowings of Rs 2,664 crore, financing incremental working capital requirements of Rs 593 crore and the balance amount to be used for general corporate purposes.
As per SEBI’s guidance, the minimum requirement for public shareholding in a listed company should be 25 per cent, thus, Ruchi Soya has announced an FPO, as the promoters of the company can reduce their shareholding to comply with SEBI guidance. want to do.
Ruchi Soya FPO: Should you Sell, Hold or Buy?
According to stock market investors, the bidders applying for arbitrage benefits in Ruchi Soya FPO are advised to book profit and exit, while those who have applied for Ruchi Soya shares keeping the longer-term horizon in mind. applied, they can book and hold 50% profit. The remaining investment for 3 months is targeted at Rs 1,000 per share with a stop loss at Rs 740 per share.
Speaking on the Ruchi Soya FPO listing; Ravi Singhal, Vice Chairman, GCL Securities said, “Those who have received shares of Ruchi Soya during allotment are advised to book 50 per cent profit and keep the rest with a target of Rs 1,000 level for 3 months. Maintain a tight trailing stop loss at Rs.740 per share for this level.” Ravi Singhal of GCL Securities said raw material prices in the FMCG segment are rising and the company has a good buffer stock which will give them margin gains in the near term. Therefore, the company is expected to report strong quarterly numbers in the short to medium term.
Echoing the views of Ravi Singhal; Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “Ruchi Soya share price may see some selling pressure on an immediate basis as it may see unwinding in FPO arbitrage positions, hence investors who have applied for arbitrage benefits. If done, they should book profit for long term investors. Investments can be made as many positive things are going for the company, reduction in palm oil and oilseeds will improve realizations which bodes well for profitability in the short to medium term. Technically, the 700 level should act as an immediate floor for the stock.
Amarjeet S Maurya, AVP – Mid Caps, Angel One Ltd said: “Incorporated in 1986, Ruchi Soya Industries Limited (RSIL), a part of Patanjali Group, is one of the leading FMCG brands in the Indian edible oil sector. Valuation Contexts In the U.S., RSIL is currently trading at 34.5x (TTM PE), lower than its peers Adani Wilmar (TTM PE -80.7x). In addition, RSIL has strong brand recall, wide distribution, healthy ROE (FY21)
Disclaimer:Disclaimer: The views and investment tips of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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