Ruchi Soya FPO subscribed 3.60 times

Published on Mar 28, 2022 18:17

The follow-on public offer (FPO) of Patanjali-backed Ruchi Soya Industries was subscribed 3.60 times on the final day of bidding. As on 17:00 IST on Monday (28 March), the issue received bids for 17,60,68,935 equity shares against the issue size of 4,89,46,260 equity shares.

The portion reserved for retail individual investors (RIIs) was subscribed by 90% with bids of 2,19,58,230 equity shares against offered 2,44,68,045 equity shares. Meanwhile, the portion reserved for qualified institutional buyers (QIBs) got subscribed by 2.20 times and that of non-institutional investors (NII) by 11.75 times.

The issue also included a reservation of upto 10,000 equity shares for eligible employees. The employees category was subscribed 7.76 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 was fixed at Rs 615-650 per share. The issue opened for public participation on 24 March 2022 and it closed today, 28 March 2022.

Qualified institutional buyers were allotted 50% of the offer. A minimum of 15% of the FPO was reserved for non-institutional bidders and a minimum 35% was allocated 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.

Before the FPO, Patanjali Ayurved held 14,25,00,000 equity shares (48.16%), Patanjali Parivahan held 5,00,00,000 equity shares (16.90%), Patanjali Gramudyog Nayas held 4,00,00,000 equity shares (13.52%), Ruchi Soya Industries Beneficiary Trust held 76,299 equity shares (0.02%) and Yogakshem Sansthan held 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 23rd 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 slumped 5.96% to settle at Rs 815.05 on Monday.