Mumbai: Markets regulator SEBI on Thursday took note of changes made in the Rs 4,300-crore follow-on public offering of Ruchi Soya, promoted by Baba Ramdev-led Patanjali Ayurved.
“We have taken note of the changes made in the offer document communicated by you in your above letter and email,” SEBI said.
Company officials claim that it is believed to be approved by the market regulator.
The Rs 4,300-crore Follow On Public Offer (FPO) is likely to be launched within a week of getting the formal approval from SEBI.
The proceeds from the FPO will be used to repay the company’s debt and meet further working capital requirements. The FPO will help the company comply with SEBI’s minimum public shareholder requirements. As per the guidelines of the regulator, a listed firm should hold at least 25% public stake.
The Indian edible oil company has time till December 2022 to reduce its stake to 75%. Promoters hold 98.90% stake in the company as of June 2021. An FPO is a book-built with a face value of Rs 2 per equity share.
Patanjali Ayurved had bought Ruchi Soya through insolvency process in 2019 for Rs 4,350 crore. Ruchi Soya specializes in the processing of oilseeds, refining edible crude oil as cooking oil and production of soya products and value added products. The company offers a farm-to-fork business model and an integrated value chain across the palm and soy divisions.
According to Baba Ramdev, Patanjali Group, which also includes Ruchi Soya, is on track to overtake Hindustan Unilever as the top FMCG company in the country this year. In 2020-21, the Haridwar-based company crossed the revenue milestone of Rs 30,000 crore as compared to HUL’s revenue of Rs 45,311 crore.
Baba Ramdev said last month that the initial investor response to the Ruchi Soya issue has been strong and he would ensure that the upcoming offering is priced in the best interest of all existing and potential shareholders.
Shares of Ruchi Soya on Thursday closed marginally lower at Rs 1093.2 in a nearly flat Mumbai market on the BSE, valuing the company at Rs 32,314 crore.
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