New Delhi: Ruchi Soya edible oil firm, owned by Ramdev -led Yoga teacher Patanjali Ayurved, has announced a floor price for a follow -up public offering (FPO) to raise up to Rs 4,300 crore. In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchange, through an insolvency process of Rs 4,350 crore. The company is in the process of issuing FPO issues 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 per cent 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 took about 3 years to reduce the organizers ’holdings to 75 percent.
FPO Floor Price: The company has decided on a floor price of Rs 615 to Rs 650 per equity share for the issue.
Face value: The company will offer shares with a face value of Rs 2 each. The minimum bid lot is 21 and in multiples of 21 equity shares thereafter.
Issue date: The bid or issue will open on March 24 and close on March 28.
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.