The follow-on public offer (FPO) of Patanjali Group’s own Ruchi Soya industries will open on 24 March 2022 and close on 28 March. The company wants to repay its debt by raising Rs 4300 crore through this FPO.
The price band of this FPO has been set from Rs 615 to Rs 650. The upper price band of Rs.650 is almost 30% off from the current market price of Ruchi Soya.
Currently, Patanjali Group holds a 98.9% stake in Ruchi Soya and public shareholders hold only a 1.1% stack. After this FPO, the public shareholding will increase to 19%.
The company’s non-executive director Baba Ramdev said that Ruchi Soya will focus on four areas – edible oil, food segment, nutraceutical segment, and domestic palm oil production.
The contribution of the edible oil segment will come down from 85% to 20 to 30% in the coming years and the food and nutraceuticals segment will make a significant contribution to the company’s revenue, he said.
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