Ruchi Soya FPO subscription status: The follow-on public offering (FPO) of Patanjali Group-owned Ruchi Soya Industries which was launched on Thursday was met with an overwhelming response by the investors as it got subscribed 3.60 times on the final day, according to the data available on the BSE.
The Rs 4,300 crore offer received bids for over 17.60 crore (17,60,68,935) shares against the total issue size of over 4.89 crore (4,89,46,260) shares, the data showed.
The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 2.20 times, while those of non institutional investors was subscribed 11.75 times and that of retail individual investors (RIIs) was subscribed 0.90 times. Separately, shares for the employees’ segment was subscribed 7.76 times, the data showed.
Ruchi Soya Industries came out with its 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. Patanjali presently owns 98.9 per cent of the company.
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.
It had received the go-ahead from Sebi to launch the FPO in August last year. The draft red herring prospectus (DRHP) for the same was filed in June 2021.
The offer had opened for subscription on Thursday, March 24, 2022, and concluded at 5 pm Monday, March 28, 2022. It had a price band of Rs 615-650 per share and before heading into the FPO, the company raised nearly Rs 1,290 crore from the anchor investors.
The company plans to utilise the net proceeds 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).
Ruchi Soya is into fast-moving consumer goods (FMCG) and fast-moving health goods (FMHG) and owns brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.
Going ahead, investors will now look forward to the share allotment date of the issue. The finalisation of the basis of allotment for Ruchi Soya Industries is expected to take place on Thursday, March 31, 2022, as per the information provided in the RHP.