Ruchi Soya Industries, which is controlled by the Patanjali Ayurved group, will hit the capital markets with a follow-on public offer (FPO) on Thursday. The Rs 4,300 crore issue will remain open for subscription for three days.

Share Market Live

NSE

Ruchi Soya, the country's largest edible oil maker, is the first to be re-listed after the bankruptcy process.

At the upper end, Patanjali, which now owns 98.9 percent of the company, will dilute around 19 percent and 18 percent at the lower end of the price band. The remaining 6-7 percent, to meet the mandatory 25 percent public float, will be diluted before the Sebi deadline of December 2022, the company said.

"We have been directed to liquidate 25 percent equity by December. With the use of the proceeds, our first goal is to make Ruchi Soya debt-free as soon as possible," said Baba Ramdev in an exclusive interview with CNBC-TV18.

Ramdev said the firm will pay back Rs 3,300 crore of debt of the issuer and the rest will go for various corporate purposes.

Here are key things to know about the Ruchi Soya FPO

Price Band: The management led by Ruchi Soya chairman Acharya Balakrishna and Baba Ramdev, non-executive director, has fixed the price band for the FPO at Rs 615-650 per share.

Subscription: Investors can bid for the offer starting March 24. The offer will close for subscription on March 28.

Lot size: The firm said the minimum bid will be for 21 shares and in its multiples thereafter.

Reservation portions: In a stock exchange filing, Ruchi Soya said the issue includes a reservation of up to 10,000 equity shares for subscription by employees.

Anchor investors: The anchor book size has been fixed at Rs 1,290 crore. Foreign Investors for the issue include Societe Generale, BNP Paribas, Sultanate of Oman, Ministry of Defence Pension Fund and Yas Takaful PJSC. Domestic investors will be SBI Group, Kotak MF, Birla MF, HDFC Life, Ask Group, Quant MF.

Purpose: Ruchi Soya will use the proceeds from the FPO to repay certain outstanding loans, meet incremental working capital requirements, and other general corporate purposes.

Managers: SBI Caps, Axis Capital and ICICI Securities are the book-running lead managers to the issue.

About the company

Ruchi Soya is among the largest branded edible oil company with its flagship brand Ruchi Gold, which is one the largest selling palm oil brands in the country. Its other leading brands include Mahakosh, Sunrich, Ruchi Star and Ruchi Sunlight.

It is also the largest manufacturer of soya foods under the brand name Nutrela with a 40 percent market share. Since the takeover, Patanjali has allowed Ruchi to sell its packaged food portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals, making it one of the leading FMCG, health and wellness companies.

(With PTI inputs)

(Edited by : Akanksha Upadhyay)