INSUBCONTINENT EXCLUSIVE:
Thursday hit the capital market to raise Rs 4,300 crore through its follow-on public offer (FPO) as it aims to become a debt-free
company.The issue closes on March 28
The price band has been fixed at Rs 615 to Rs 650 per share.Addressing a press conference here, Ramdev said the company has launched its FPO
despite volatility in the stock market because of the war between Russia and Ukraine.He said the company has already raised Rs 1,290 crore
from anchor investors on Wednesday and expressed confidence that its FPO would be a huge success as people have faith in its products and
brand.Ramdev said the proceeds of the FPO would be utilised to retire the term loan of Rs 3,300 crore."Ruchi Soya will become debt-free," he
asserted.Asked why the price band has been kept lower than the current market prices, Ramdev said this has been done to give a good return
to investors.Ruchi Soya shares closed on Wednesday Rs 897.45 apiece on the BSE."We have turnaround the Ruchi Soya after acquiring it through
insolvency proceedings," Ramdev said.He said the company became bankrupt because of the mistakes committed by the previous management."We
are running the company with transparency, accountability and corporate governance," he said.Currently, Patanjali Group owns about 98.9 per
cent stake in Ruchi Soya.Public shareholders own about 1.1 per cent stake.Post the FPO, Patanjali Group's holding in Ruchi Soya will come
down to about 81 per cent, and the public will hold about 19 per cent.The Securities and Exchange Board of India (SEBI) has given the nod
is coming out with the public issue to meet SEBI's norm of minimum public shareholding of 25 per cent in a listed entity
It has around three years to pare promoters' stake to 75 per cent.Ruchi Soya will use the proceeds from the issue for furthering the
company's business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general
4,350 crore.Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil,
manufacturing soya products and value-added products
The company has an integrated value chain in palm and soya segments, having a farm-to-fork business model.It has brands like Mahakosh,
Sunrich, Ruchi Gold and Nutrela.
