Ruchi Soya FPO: Investors have not been fascinated yet, public is not even interested


new Delhi. The follow-on public offer (FPO) of Baba Ramdev-led Patanjali Ayurved-owned Ruchi Soya also witnessed a slowdown today. The issue could get subscribed 0.3 times or 30% on the second day due to institutional buying. It was subscribed only 12 percent on the first day.

The retail investors segment is subscribed up to 34% so far, while the qualified institutional buyers (QIB) segment has received bids for 41%. Meanwhile, non-institutional investors have not shown any interest. This segment has seen only 9% subscription.

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In all, Ruchi Soya FPO has received bids for only 1.52 crore equity shares against the offer size of 4.89 crore shares. The issue, which was launched on March 24, will remain open till March 28. Bids can be placed during this time.

On Friday, the share price of Ruchi Soya closed at Rs 867.60, down 0.60% on the National Stock Exchange.

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Plans to raise ₹4,300 crore
Ruchi Soya entered the capital market to raise ₹4,300 crore through its FPO, to make the company debt-free. The price band has been fixed from ₹ 615 to ₹ 650 per share.

Ramdev said that despite the volatility in the stock market between Russia and Ukraine, the company has launched its FPO. He said that the company has already raised ₹1,290 crore from anchor investors and is confident that its FPO will be successful, as people have faith in its products and brand.
Ramdev said that the amount received from the FPO will be used to repay the term loan of Rs 3,300 crore.

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Baba’s share will decrease
At present, Patanjali Group holds about 98.9% stake in Ruchi Soya. Public shareholders hold about 1.1% of the shares. After the FPO, the stake of Patanjali Group in Ruchi Soya will come down to about 81 per cent and the public’s stake will be around 19 per cent.

Tags: Baba Ramdev, Patanjali Ruchi Soya, stock market


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