Patanjali -Supported Soybean Ruchi FPO Last Day: Issue Subscribed 2.61 Times

Under the FPO, the retail individual investor (RII) quota was subscribed 79 per cent (0.79 times).

New Delhi:

The follow -up public offering (FPO) of Ruchi Soya backed by Patanjali Ayurved has been subscribed 2.61 times so far on the last day of bidding. As of 2:51 pm, FPO received a bid of 12.78 lakh crore compared to 4.89 lakh crore shares offered.

The retail individual investor (RII) quota was subscribed 79 per cent (0.79 times). The share of eligible institutional buyers (QIBs) and non-institutional investors were subscribed 1.53 times and 8.32 times, respectively.

The edible oil firm had raised Rs 1,290 crore from major investors prior to its FPO. Ruchi Soya has targeted to mop up Rs 4,300 crore to “become a debt -free company.”

In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchange, through an insolvency process of Rs 4,350 crore.

The FPO issue is to meet SEBI’s minimum public shareholding norm of 25 per cent in a listed entity.

Promoter Patanjali now owns almost 99 per cent stake in Ruchi Soya. They need to liquidate at least 9 percent stake in this FPO round.

According to the norms of the Securities and Exchange Board of India (SEBI), the company needs to downsize the promoter’s interest to achieve a minimum public shareholding of 25 per cent. It has about three years to reduce the organizer’s stake to 75 percent.

The company set a floor price of Rs 615 to Rs 650 per equity share for the issue. It offers shares with a face value of Rs 2 each with a minimum bid lot of 21 and in multiples of 21 equity shares thereafter. The FPO opens on March 24th.

According to the draft red herring prospectus (DRHP), Ruchi Soya plans to use the entire proceeds of the issue to advance the company’s business by repaying certain outstanding loans, meeting additional working capital requirements and for other general corporate purposes.

An FPO is an offer to sell additional shares, while an IPO or initial public offering is the first sale of a company’s shares.


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