Ruchi Soya FPO: Baba Ramdev’s company Ruchi Soya will bring 4300 crore FPO, promoters will sell 9 percent stake

Baba Ramdev-owned edible oil company Ruchi Soya has filed draft documents with SEBI for a follow-on public offer (FPO) of Rs 4,300 crore. This FPO is being brought for SEBI’s requirement of at least 25 percent public shareholding in the company. SEBI on Saturday filed its Red Herring Prospectus (DRHP) with SEBI to raise Rs 4,300 crore through the sale of its shares.

Promoter group holds 98.90 percent stake in Ruchi Soya

According to the prospectus, the promoters of Ruchi Soya will sell their 9 per cent stake. After the approval of SEBI, the FPO will probably come in the market in the next month. The promoters’ stake in Ruchi Soya currently stands at 98.90 per cent. As per Sebi’s listing rules, at least 25 per cent stake in listed companies has to be made public. The company still has three years to reduce the stake of the promoters. Baba Ramdev’s Patanjali Ayurved bought Ruchi Soya in 2019. It was listed on the stock exchange under the bankruptcy process of 4350 crores. The shares of Ruchi Soya had reached Rs 1530 only after the listing.

LIC IPO: Cabinet approval for LIC’s IPO, now a committee headed by Finance Minister will decide the issue size and price

Ruchi Soya bought Patanjali biscuits in May

Manufactures palm and soya products near Ruchi Soya. It has brands like Mahakosh, Sunrich, Ruchi Gold and Nutrella. In May, Ruchi Soya had announced to buy Patanjali Natural Biscuits Pvt Ltd. Ruchi Soya bought this company for Rs 60.02 crore. The company had said that it is going to expand its product, so it is buying it. Patanjali Ayurved Limited has claimed to cross the turnover mark of Rs 30,000 crore in the financial year 2020-21. Baba Ramdev has said that he will create a large number of jobs through Patanjali Ayurved. Recently, he had promised five lakh jobs.