Investors who filed for the follow-up public offering (FPO) of Ruchi Soya Industries saw a 42 percent increase in less than two weeks. The shares of the promoted Patanjali Ayurved closed at Rs 925 compared to the FPO price of Rs 650. Today’s trading began 66.15 million new shares issued in the FPO, which closed on March 30th.
Ruchi Soya’s stock was expected to decline after the listing of the new shares. Defying expectations, the stock rose by 13 per cent on Friday with shares trading at Rs 3,823 crore. The company’s announcement that it will become debt-free early next week boosted sentiment. After the FPO, the promoter’s contribution to the company decreased from 98.9 percent to less than 82 percent.
Market regulator Sebi directed the company to provide the option for FPO applicants to withdraw their applications due to “the circulation of spam advertising issue”. Messages circulating on social media stated that the FPO was a good investment opportunity in the Patanjali Group and the shares were offered at a discount of 30 per cent from the market price. About 9.74 million bids from foreign investors, mostly foreign investors, were canceled.
According to the disclosure provided by the company, Ruchi Soya FPO saw a total of 441,696 applications and the offer received a subscription of 2.73 times. The retail portion of the issue was only 71 percent oversubscribed and the High Net Worth Individual (HNI) portion was oversubscribed 12 times.
At Friday’s closing price, the company is asking for a market cap of Rs 33,479 crore. During the first nine months of 2021 to 22nd (ending December 2021), Ruchi Soya reported a net profit of Rs 572 crore on revenue of Rs 17,542 crore.