Ruchi Soya FPO: Should you invest money in this, know what is the opinion of analysts

Ruchi Soya FPO: Should you invest money in this, know what is the opinion of analysts


new Delhi. Ruchi Soya FPO: Ruchi Soya has issued a follow-on offer (FPO) of Rs 4,300 crore. A price band of Rs 615 to 650 has been fixed for this FPO. Investors can bid for this till March 28. Patanjali’s investment company Ruchi Soya is offering equity shares of Rs 2 face value of Rs 4,300 crore under the FPO. The company will use the capital raised from the FPO to pay off debt, meet working capital requirements and for general corporate purposes.

Ruchi Soya was bought by Patanjali Ayurved through an insolvency process. It is an edible oil manufacturing company. It sells its products Nutrila, Mahakosh, Sunrich, Ruchi Gold and Ruchi No. Sells under 1 brand name etc. Recently the company has also started selling flour and honey. At present, Patanjali holds 98.9 per cent stake in Ruchi Soya. The public shareholding in the company is 1.1 percent. After the FPO, Patanjali’s stake in the company will come down to 81 per cent, while the public shareholding will increase to 19 per cent.

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Rs 1,290 crore raised from anchor investors
Ruchi Soya Industries has raised an amount of about Rs 1,290 crore from 46 anchor investors on Wednesday, March 23, a day before the opening of its follow-on public offering (FPO). The FPO of Ruchi Soya is open for the rest of the investors on Thursday, March 24. The company said in a communication sent to BSE that it has allotted 1.98 crore equity shares to 46 anchor investors at a price of Rs 650 per share in the upper price band of FPO.

should you invest
Ravi Singh, Vice President and Research Head, ShareIndia, says that although Ruchi Soya’s financial position is weak, the company’s base is strong. There is a huge demand for the products made by it. So investors can invest money in this FPO.

Religare Broking said that the industry in which Ruchi Soya is in, has a lot of potential for growth ahead. The brokerage firm has said in its note that in the coming times, the company’s business relationship with Patanjali Ayurved will be strengthened. Its focus will increase on more profitable products. In addition, it will be important to expand the distribution network and manage the supply chain.

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SBI Securities has said about Ruchi Soya that its promoter is a key player in the plantation of oil palm, and has an experienced leadership and management team. The company has good potential for growth in the coming times.

(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you wish to invest in any of these, please consult a Certified Investment Advisor first. Tech for FTCP is not responsible for any profit or loss caused by you. Will happen.)

Tags: Patanjali Ayurved Limited, Stock Markets


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