Ruchi Soya Industries has allocated Rs 1,290 crore shares to anchor investors ahead of its follow-up public offering of Rs 4,300 crore (FPO). A total of 19.83 million shares of Rs 650 apiece were allotted.
Some foreign investors who were allocated, including Société Générale, BNP Paribas, Oman Pension Fund and YAS Takaful, submitted an application in the anchor category. Among the local investors, SBI MF, Kotak MF, Birla MF, HDFC Life Insurance, Ask Group and Quant MF received an allotment.
Ruchi Soya has priced the FPO in the range of Rs 615 to Rs 650 per share. The issue price is 27-32 per cent lower than Wednesday’s closing price of Rs 897 per share. The proceeds of the FPO will be used by the company for debt settlement.
Patanjali Ayurveda led by Baba Ramdev holds a 98.9 percent stake in Ruchi Soya.
The FPO is made to dilute the promoter’s ownership in the company in order to comply with the public shareholding criteria of 25 percent. After the FPO, Patanjali’s contribution will decrease to 81 per cent, while the public contribution will rise to 19 per cent.
Ruchi Soya is primarily engaged in the manufacture and sale of edible oils and soy products under brands, such as Mahakosh, Sunrich and Nutrela.
“Ruchi Soya has strong backing from the Patanjali Group and we are witnessing a transformation of the company as it has been able to turn a profit. It has a strong product portfolio and is one of the largest integrated edible oil refiners in India. The stock is trading in a At a price-to-earnings multiplier of 32, which is below the industry average.”
For the quarter ended December 2021, Ruchi Soya reported a net profit of Rs.234 crore on revenue of Rs.6,280 crore. At the current market price, the company is charging a market cap of around Rs 26,900 crore.