India’s largest manufacturer of edible oil, Ruchi Soya is ‘debt free’ after its follow-on public offering (FPO). A part of the proceeds arising from the FPO has been utilized to repay debt.
With that, the Baba Ramdev-backed company has repaid ₹2,925 crores to a consortium of banks led by the government-owned State Bank of India (SBI).
Acharya Balkrishna, MD of Patanjali Ayurved Ltd, tweeted that Ruchi Soya has become debt-free. In its draft red herring prospectus, the company had mentioned that it would repay the loan of around Rs 1,950 crore to the lenders, a company spokesperson said.
आज रुचि सोया हुआ ऋण मुक्त!
@TheOfficialSBI के Chairmanश्री दिनेश कुमार खारा व MD श्री अश्विनी भाटिया जी को हमने 29,25,00,00,000 रुपए (Two thousand nine hundred twenty five crore)का cheque handover किया,लिए गए ऋण का समय से पूर्व,विनम्रतापूर्वक भुगतान एक सन्यासी द्वारा ही संभव है! pic.twitter.com/Y1MzocaVKW— Acharya Balkrishna (@Ach_Balkrishna) April 8, 2022
However, the company has decided to repay the entire debt amount of Rs 2,925 crore to its lenders. The money was paid to a consortium of banks led by the State Bank of India.
The other banks in the consortium are Punjab National Bank, Union Bank of India, Syndicate Bank, and Allahabad Bank. In 2019, Patanjali acquired Ruchi Soya for Rs 4,350 crore through an insolvency process.
Ruchi Soya FPO
Ruchi Soya Industries’ new equity shares, issued at the time of follow-on public offering (FPO), got listed on the bourses on Friday. The investors, who were allotted shares in the public offering, made a profit of 36 per cent as the counter touched a high of Rs 882.55, compared to its issue price of Rs 650.
The company board approved the allotment of 6,61,53,846 equity shares with a face value of Rs 2 each, aggregating to Rs 4,300 crore. FPO of Ruchi Soya was open for subscription between March 24-and 28 as the company sold its shares in the range of Rs 615-650 per share, with a minimum lot size of 21 shares.
The paid-up equity share capital of the company stands increased to Rs 72.4 crore from Rs 59.16 crore earlier. The company raised Rs 1,290 crore from anchor investors, issuing about 1.98 crore shares at Rs 650 per share. (With Agency Input)
Ruchi Soya Stock
Patanjali-backed Ruchi Soya Industries rallied 13 percent after its follow-on offer shares listed on the bourses on April 8 as the company claimed that it is debt-free with FPO money.
The stock opened at Rs 850 on the BSE, up 3.8 percent against the previous close. It gained momentum in afternoon trade and closed with 13 percent gains at Rs 925. If the gain is compared with the FPO issue price of Rs 650, the rally stands at 42 percent.
The stock had corrected 25 percent from the closing of March 15 till the previous session. Even during the FPO subscription period, it had seen a 9 percent odd correction.
