Monk Makes Corporate History

Baba and the Bull - Ramdev at BSE after Ruchi Soya FPO listing

Monk Makes Corporate History

Once Bankrupt Ruchi Soya Turns Debt Free On FPO

The FPO of Baba Ramdev’s Patanjali-backed Ruchi Soya listed with a premium of Rs 200

MUMBAI, Apr 08 (The CONNECT) – Yoga guru Baba Ramdev’s Patanjali-controlled Ruchi Soya has created history by turning debt-free following a grad success of its follow-on-offering or FPO and a bumper listing at a premium of Rs 200 apiece.

The company which was bankrupt not long ago was acquired by Patanjali in July 2019 through an NCLT process after Standard Chartered Bank and DBS Bank filed bankruptcy petition. In the process, the lenders had to take a 60% haircut and Patanjali paid Rs 4,350 towards the acquisition cost.

The FPO shares of Patanjali-controlled Ruchi Soya Industries Limited, listed on the BSE at Rs 850, with a premium of Rs 200 over the issue price. The scrip closed at Rs 924.85 per share on BSE and Rs 938 on NSE.

The follow-on public offering was offered in the price band of of Rs 615-Rs650 per share.

As per BSE, the total quantity of Ruchi Soya’s traded shares stood at 30.23 lakh shares with a delivery quantity percentage of 26.01%. The quantity traded and total quantity traded at NSE was 4.03 crore shares with a delivery percentage of 29.65%. Total Turnover (BSE+NSE) amounted to Rs 3824.22 crore.

Company SEO Sanjeev Asthana said “The board has decided to clear entire bank borrowings of the company thereby making it a debt free company as on date. It covers Term loan from banks, Working Capital borrowing, Bank Guarantees and Letter of Credits”

The issue was opened for subscription from 24 March 2022 to 28 March 2022, and the withdrawal window was open for two days until March 30.

The company informed stock markets on Tuesday that it has approved the allotment of 6,61,53,846 equity shares for a total of Rs 4,300 crore under the FPO. The company's paid-up equity share capital has increased from Rs 59.16 crore to Rs 72.4 crore as a result of the offering.

The FPO comprised of equity shares of face value of Rs 2 each aggregating to Rs 4300 crore.

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