Ruchi Soya Stocks Performance: After repeated listing, Baba Ramdev’s Panthjali Group company Ruchi Soya gave 95 times or 9400 per cent returns in just 5 months. But now it is declining. Ruchi Soya’s stock has lost more than 55 per cent in 2 months. In fact, sentiments have become weak due to the market regulator SEBI’s eyes after heavy boom, questions raised by experts and weak quarterly performance. Currently, after the quarterly results, shares of Yoga Guru Baba Ramdev’s Patanjali Group company Ruchi Soya had a lower circuit of 5 per cent on Thursday.
In today’s business, Ruchi Soya’s stock weakened to Rs 683. Ruchi Soya reported a 13 per cent decline in profits in the first quarter of FY 2020-21 to Rs 12.25 crore from Rs 14.01 crore in the year-ago period. At the same time, the total income also decreased to Rs 3,057.15 crore. Acharya Balakrishna has also resigned from the post of Managing Director of the company citing busyness.
There was a loss in the March quarter as well
Ruchi Soya had a loss of Rs 41.25 crore in the March quarter. Whereas the company had a loss of 32.11 crores in the fourth quarter of FY 2019. Whereas in December quarter, the company’s profit had increased 24 times to Rs 151 crore from Rs 6.29 crore in the year-ago quarter.
Wealth increased by 95 times in 5 months
Ruchi Soya shares saw a continuous rally before 26 June. Ruchi Soya was re-listed on 27 January 2020. Then the share price was 16 rupees. While on June 26, the stock reached a high of Rs 1520. That is, the wealth of investors increased by 95 times or 9400 per cent during this period.
Yoga Guru Ramdev bought in bankrupt sale
Ruchi Soya is one of the largest edible oil companies in India. This company went bankrupt last year and Baba Ramdev’s Patanjali bought Ruchi Soya in the bankrupt sale. About 99.03 per cent stake of the company i.e. 27 crore shares is with 15 companies of Patanjali Group. Only 0.97 percent shares are held by investors.
The reason behind the stock fall
Such a huge jump in shares of a company with a public shareholding of just 0.97 per cent, according to a Bloomberg report, has prompted India’s stock market regulator to consider changing its rules for firms originating from the nation’s bankruptcy process.
SEBI has sought comment on the proposal for the time period to be given to the companies for re-listing after the bankrupt resolution. As per the provision, companies can now get the list within six months of the bankrupt resolution. Right now the time limit is 18 months. Under this rule, such companies have to mandatorily raise the minimum public stake to 25 per cent within three years of relisting.
In fact, due to this huge rise in the stock, trouble has arisen for the company. In fact, as soon as the list of a bankrupt company was listed, the experts also started finding the reason for this huge boom. Such a media report came that expert Ruchi wants to get market regulator SEBI to investigate so much in the stock of Soya. For all these reasons, investors are also looking cautious.