Ruchi Soya FPO opens for public today, company raises Rs 1,290 crore from anchor investors

Ruchi Soya FPO: The Rs 4,300 crore follow-on public offer (FPO) of Patanjali Group-owned Ruchi Soya Industries opened for public participation on Thursday, March 24, 2022, and the issue will be available for subscription till Monday, March 28, 2022.

So far till 12:36 pm on Thursday, the issue was subscribed 0.03 times on the BSE and 0.03 times on the National Stock Exchange (NSE), bid details of the respective stock exchanges showed.

The company is into fast-moving consumer goods (FMCG) and fast-moving health goods (FMHG) and owns brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela. It is coming out with the FPO to meet market regulator Sebi’s norm of minimum public shareholding of 25 per cent in a listed entity. In 2019, Patanjali Group had acquired the stock exchange-listed company through an insolvency process for Rs 4,350 crore. Currently, it owns 98.9 per cent in Ruchi Soya.

According to Sebi rules, the company needs to bring down promoters’ stake to achieve the minimum public shareholding of 25 per cent. It has around 3 years to pare promoters’ stake to 75 per cent.

The FPO has a price band of Rs 615-650 per share and before heading into the issue, Ruchi Soya on Wednesday raised nearly Rs 1,290 crore (Rs 12,89,80,49,450) from 46 anchor investors in lieu of 1,98,43,153 equity shares at Rs 650 each, data from the stock exchanges showed.

The anchor investors include the likes of Aditya Birla Sun Life Mutual Fund, AG Dynamics Funds, Alchemy Capital, ASK MF, HDFC Life Insurance Company, Kotak MF, Quant MF, SBI Life Insurance Company, Societe Generale, BNP Paribas, The Sultanate of Oman Ministry of Defence Pension Fund, UTI MF, Yas Takaful PJSC and UPS Group among others.

The company plans to utilise the net proceeds of the FPO for repayment and/or prepayment of borrowings, funding incremental working capital requirements and general corporate purposes, according to the information provided in the red herring prospectus (RHP).

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for the retail investors and the remaining 15 per cent is for non-institutional bidders.

SBI Capital Markets, Axis Capital and ICICI Securities are the book running lead managers to the offer while Link Intime India is the registrar of the issue.

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. It has an integrated value chain in palm and soya segments, having a farm-to-fork business model.

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