That is at a discount to Monday’s closing price of ₹910 apiece. The stock, which rallied 36% in the past one year, plunged 10% on Monday after the company fixed the price band at 35% discount to last Thursday’s closing price.
This will be the first public offer in the last one and half months. Impacted by the sharp volatility in the market and uncertain investment climate, over a dozen firms that earlier planned to raise funds through IPOs this fiscal have postponed their public offerings to next fiscal despite approvals. The Ruchi Soya FPO will close on Monday, March 28.
About 50% of the offer will be available for allocation to qualified institutional buyers, while 15% and 35% of the offer have been reserved for non-institutional bidders and retail investors, respectively. SBI Capital Markets, Axis Capital, and ICICI Securities are the book running lead managers to the issue.
Baba Ramdev’s Patanjali Group acquired the edible-oil company through a bankruptcy sale. It has been one of the top performers on Dalal Street in 2020. After getting relisted at ₹17, Ruchi Soya shares surged to ₹1,507 on June 26, 2020, with the company valued at about ₹50,359 crore. The OFS is done at a valuation of ₹19,230 crore.
Promoter Patanjali currently owns a 98.9% stake in Ruchi Soya, and that stake will come down to 81% post-OFS. The net proceeds will be utilised to repay certain borrowings, and for incremental working capital requirements and general corporate purposes.
Ruchi Soya Industries is recognized among the largest branded oil packaged food companies. Its ‘Ruchi Gold’ brand has a market leadership position because it is India’s highest-selling palm oil brand and it is the pioneer and largest manufacturer of soya foods in India under ‘Nutrela.’
The company has expanded its packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals. Ruchi Soya has also launched its nutraceuticals under the joint branding of ‘Patanjali and Nutrela.’
