This will be a large follow-on public offer (FPO) coming from Ruchi Soya Industries of approximately Rs 4,300 crore.

People in the know indicated that Ruchi Soya is expected to file the red herring prospectus or RHP for this particular FPO in the next two weeks itself. Also, this particular dilution through the FPO would help the promoters of Ruchi Soya is Patanjali Group to comply with the minimum public shareholding norms.

Currently, Patanjali Group owns about 98.9 percent stake in Ruchi Soya. Public shareholders own about 1.1 percent stake.

Post this FPO, Patanjali Group’s holding in Ruchi Soya will come down to about 81 percent and the public would be holding about 19 percent.

People in the know said that Patanjali Group may look at selling the balance 4-6 percent stake which will get them to the point of the threshold of that minimum public shareholding norm that is about 4-6 percent stake would be diluted before December 2022.

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CNBC TV 18 has returned to Ruchi Soya on this particular development and still awaiting a response from the company.

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A quick look at the stock: The stock is down about 43 percent from its 52 weeks; about 15 percent in the last three months, down about 27 percent in the last six months and it's up about 7 percent in the last year.

Watch the accompanying video of CNBC-TV18’s Yash Jain for more details.