Ruchi Soya FPO gets decent response from retail investors

Published on Mar 25, 2022 14:24

Patanjali-backed Ruchi Soya Industries` FPO was subscribed 20% so far as at 14:09 IST on Friday (25 March). Demand from qualified institutional and non-institutional investors was lackluster.

As per NSE data, the FPO received bids for 99,40,875 equity shares against the issue size of 4,89,46,260 equity shares, subscribing by 20%.

The portion reserved for retail individual investors (RIIs) was subscribed by 33% with bids of 80,03,667 equity shares against offered 2,44,68,045 equity shares. Meanwhile, the portion reserved for qualified institutional buyers (QIBs) got subscribed by 7% and that of non-institutional investors (NII) by 8%.

The issue also includes a reservation of upto 10,000 equity shares for eligible employees. The employees category was subscribed 2.91 times against the reserved portion.

The FPO consists of fresh issuance of equity shares for an amount aggregating to Rs 4,300 crore. The price band for the offer has been fixed at Rs 615-650 per share. The offer will close on 28 March 2022.

The issue is being made through the book building process. Qualified institutional buyers will be allowed to bid not more than 50% of the offer. A minimum of 15% of the FPO will be reserved for non-institutional bidders and not less than 35% of the offer shall be available for allocation to retail individual bidders.

Objectives for the fresh issue are-repayment/prepayment of Rs 2663.8 crore of borrowings, funding of incremental working capital requirements of Rs 593.42 crore and remaining amount will be used for general corporate purposes.

Promoters pre issue shareholding pattern of the Company is as follows- Patanjali Ayurved holds 14,25,00,000 Equity Shares (48.16%), Patanjali Parivahan holds 5,00,00,000 Equity Shares (16.90%), Patanjali Gramudyog Nayas holds 4,00,00,000 Equity Shares (13.52%), Ruchi Soya Industries Beneficiary Trust holds 76,299 Equity Shares (0.02%)and Yogakshem Sansthan holds 6,00,00,000 Equity Shares (20.28%), cumulatively representing 98.90% of the pre offer issued and paid-up Equity Share capital. Post FPO, Patanjali`s shareholding in the edible oil manufacturer will reduce to 81% while public shareholding will rise to 19%.

Ahead of the FPO, the company on Wednesday (23 March) raised Rs 1,290 crore from anchor investors. The company said it finalised allocation of more than 1.98 crore equity shares to 46 anchor investors, at issue price of Rs 650 per share, the higher end of price band. "Of the total allocation, 41.91 lakh equity were allocated to four domestic mutual funds through a total of 24 schemes."

Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its `Ruchi Gold` brand has a market leadership position, on account of being India`s highest selling palm oil brand and also the pioneers and largest manufacturers of soya foods in India under the brand name of `Nutrela`. It has launched its nutraceuticals under the joint branding of `Patanjali and Nutrela`.

Net profit of Ruchi Soya Industries rose 2.92% to Rs 234.07 crore on 40.65% rise in net sales to Rs 6280.46 crore in Q3 December 2021 over Q3 December 2020.

Shares of Ruchi Soya Industries were up 0.26% at Rs 875 on the BSE.