Ruchi Soya FPO Subscription: Ruchi Soya tumbles 10% ahead of FPO closure | Business - Times of India

Ruchi Soya FPO Subscription: Ruchi Soya tumbles 10% ahead of FPO closure | Business – Times of India

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NEW DELHI: Shares of Ruchi Soya Industries tumbled 10 per cent to Rs 783.45 on the BSE ahead of closure of its follow-on public offering (FPO) on Monday.
The stock of Pantajali-backed edible oil company slipped 14 per cent to Rs 866.7. It was trading lower for the fourth straight day.
Last week, Ruchi Soya hit the capital market to raise Rs 4,300 crore through its follow-on public offer (FPO) as it aims to turn into a debt-free company. The price band has been fixed at Rs 615 to Rs 650 per share.
Addressing a press conference last week, Baba Ramdev said the company has launched its FPO despite volatility in the stock market.
He said the company has already raised Rs 1,290 crore from anchor investors and expressed confidence that its FPO would be a huge success as people have faith in its products and brand.
The proceeds of the FPO would are expected to be utilised to retire a term loan of Rs 3,300 crore.
“Ruchi Soya will become debt-free,” he asserted.
Its price band has been kept lower than current market prices. Ramdev said this has been done to offer a good return to investors.
Currently, Patanjali Group owns about 98.9 per cent stake in Ruchi Soya. Public shareholders own about 1.1 per cent stake. Post the FPO, Patanjali Group’s holding in Ruchi Soya will come down to about 81 per cent, and the public will hold about 19 per cent.
(With inputs from agencies)



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