Baba Ramdev-led Patanjali Ayurved-owned Ruchi Soya will launch its follow-on public offer (FPO) in the capital market on March 24, the company said in a regulatory filing on Friday.

Share Market Live

NSE

The edible oil firm is looking to raise up to Rs 4,300 crore through the FPO. A committee of the board has approved and adopted the red herring prospectus (RHP), according to the filing. The three-day offer will be open for subscription till March 28, 2022.

Currently, Patanjali Group owns about 98.9 percent stake in Ruchi Soya. Public shareholders own about 1.1 percent stake. Post the FPO, Patanjali Group’s holding in Ruchi Soya will come down to about 81 percent and the public would hold about 19 percent.

The Securities and Exchange Board of India (SEBI) has given a nod for the launch of the Ruchi Soya FPO in August 2021, after the company filed the draft red herring prospectus (DRHP) in June 2021. The firm is coming out with the public issue to meet Sebi's norm of minimum public shareholding of 25 percent in a listed entity. It has around three years to pare promoters' stake to 75 percent.

Ruchi Soya will use the proceeds from the issue for furthering the company's business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes.

In 2019, Patanjali acquired Ruchi Soya, which is listed on the stock exchanges, through an insolvency process for Rs 4,350 crore.

Ruchi Soya primarily operates in the business of processing oilseeds, refining crude edible oil for use as cooking oil, manufacturing soya products, and value-added products. The company has an integrated value chain in palm and soya segments, having a farm-to-fork business model. It has brands such as Mahakosh, Sunrich, Ruchi Gold and Nutrela.

(With PTI inputs)