Issue size, price range and subscription dates, here are the key things to know

Ruchi Soya Industries, controlled by the Patanjali Ayurved Group, will launch a follow-on public offering (FPO) in the capital markets on Thursday. The Rs 4,300 crore issue will remain open for subscription for three days.

Ruchi Soya, the country’s largest edible oil maker, is the first to be reinstated after the bankruptcy process.

At the high end, Patanjali, who now owns 98.9% of the company, will dilute around 19% and 18% at the lower end of the price range. The remaining 6-7%, to meet the public float requirement of 25%, will be diluted by the December 2022 Sebi deadline, the company said.

“We have been instructed to liquidate 25% of the capital by December. With the use of the proceeds, our first objective is to free Ruchi Soya from debt as soon as possible,” Baba Ramdev said in an exclusive interview with CNBC-TV18.

Ramdev said the company will repay Rs 3,300 crore of issuer debt and the rest will go for various corporate purposes.

Here are the key things to know about Ruchi Soya FPO

Price range : Management headed by Ruchi Soya Chairman Acharya Balakrishna and Non-Executive Director Baba Ramdev has set the price range for the FPO at Rs 615-650 per share.
Subscription: Investors can bid for the offer from March 24. The offer will be closed for subscription on March 28.

Lot size: The firm said the minimum bid will be 21 shares and in its multiples thereafter.

Reservation portions: In a filing, Ruchi Soya said the issue includes a reservation of up to 10,000 shares for employees to subscribe.

Key Investors: The size of the anchor book has been set at Rs 1,290 crore. Foreign investors for the issuance include Societe Generale, BNP Paribas, Sultanate of Oman, Ministry of Defense Pension Fund and Yas Takaful PJSC. Domestic investors will be SBI Group, Kotak MF, Birla MF, HDFC Life, Ask Group, Quant MF.

Goal: Ruchi Soya will use the FPO proceeds to repay certain outstanding loans, meet additional working capital requirements and for other general corporate purposes.

Managers: SBI Caps, Axis Capital and ICICI Securities lead the issue.

About the company

Ruchi Soya is one of the largest branded edible oil companies with its flagship brand Ruchi Gold, which is one of the top-selling palm oil brands in the country. Its other major brands are Mahakosh, Sunrich, Ruchi Star and Ruchi Sunlight.

It is also the largest manufacturer of soy foods under the Nutrela brand with a 40% market share. Since the takeover, Patanjali has enabled Ruchi to sell its packaged food portfolio of biscuits, biscuits, rusks, noodles and breakfast cereals, making it one of the leading FMCG, healthcare and well-being.

(With PTI inputs)

(Edited by : Akanksha Upadhyay)

Evelyn C. Tobin