Baba Ramdev launches Ruchi Soya FPO for retail investors


New Delhi: The Rs 4,300-crore Follow On Public Offer (FPO) of Patanjali Group-owned Ruchi Soya has been opened for retail investors from Thursday. The FPO will be open for public subscription from March 24 to March 28.

It is worth noting that diversified FMCG company Ruchi Soya Industries has raised Rs 1290 crore from its anchor investors before the opening of its public subscription. The company has offered 1.98 crore equity shares to anchor investors at a price of Rs 650 per equity share.

According to the DRHP, the company will utilize the issue to pay off certain outstanding debts, increase working capital and meet other corporate objectives and further the business of the company.

Baba Ramdev’s company Patanjali had acquired Ruchi Soya, a stock exchange-listed company, for Rs 4,350 crore in an insolvency process in 2019.

The promoters of the company currently hold 99 per cent stake in the company. The company is going to sell about 9 percent stake in this FPO.

As per SEBI norms, the promoters’ stake will have to be reduced for the company to get at least 25 per cent public shareholding. It has about three years to bring down the promoters’ stake to 75 per cent.

Baba Ramdev also held a press conference today regarding Ruchi Soya FPO. During this, Baba Ramdev said that – It is a big day for Patanjali family. Ruchi Soya’s FPO is being issued for the common man. 1290 crore rupees have come through anchor investor only yesterday. 

Only a few people in the stock market take advantage of the prosperity of the stock market. Common people did not understand about the stock market. But it was as if yoga was carried from house to house. Similarly, now the message of prosperity is now being carried from door to door with caution.

Watch the full video here:

“We have turned around Ruchi Soya, which was a sick company, by taking it over. Its share was valued at Rs 7 when we took it. Now it has reached the top. We are trying to make Ruchi Soya the biggest brand of food and agriculture. We want to make our country self-reliant in the field of edible oil. Right now the FPO listing of Ruchi Soya is going on, later on, Patanjali will also be listed,” Baba Ramdev said.

“It is our priority to make Ruchi Soya debt-free. There is a debt of 3300 crores, it will be done in the beginning of April. We have an FPO of Rs 4300 crore. When there was turmoil in the global market due to the Russia-Ukraine war, no one was entering the market. But we have decided to enter the market,” Baba Ramdev added. 

“We are ensuring that there is no overlap in the various businesses of the group. It is a relationship between Patanjali and Ruchi Soya. Now there is a non-compete agreement between the group firms. The business will get a further boost and help it grow and become the largest consumer goods company in the next few years.”

According to media reports, in the financial year 2021, Patanjali Group managed to achieve revenue of over Rs 30,000 crore for the first time after adding Ruchi Soya in 2020. Ruchi Soya’s sales of Rs 16,318 crore were 54 per cent of Patanjali’s total revenue.

first published:March 24, 2022, 6:23 p.m.

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