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Ruchi Soya Industries Ltd plans to raise up to ₹4,300 crore through follow-on public offering (FPO). The FPO opens on March 24, 2022, for subscription and will close on March 28, 2022. Ruchi Soya’s parent company is Patanjali Ayurved.
The company has fixed the price band at ₹615-650 per share for its follow-on public offer. The FPO price is at nearly a 29 per cent discount against the last traded price.
The FPO consists of fresh issue of equity shares and up to 10,000 equity shares are reserved for its employees.
The company has allotted shares worth ₹1,290 crore to anchor investors ahead of its ₹4,300-crore follow-on public offering (FPO). A total of 19.83 million shares were allotted at ₹650 apiece.
The purpose of the FPO is to dilute the promoter holding in the company in order to comply with the 25 per cent minimum public shareholding norms, to repay its debt and utilise the capital for its working capital requirements.
Company Summary
Ruchi Soya Industries Limited is a diversified Fast Moving Consumer Goods (FMCG) and Fast Moving Health Goods (FMHG) focused company. The company has strategically located manufacturing facilities and well-recognised brands having a pan-India presence. Ruchi is one of the largest FMCG companies in the Indian edible oil sector and one of the largest fully integrated edible oil refining companies in India.
The company is present across the entire value chain in palm and soya segment, with a healthy mix of upstream and downstream business. Moreover, the company has been allocated zones, to undertake palm plantation, by the Government, which assists in backward integration of sourcing palm oil.
The company has also leveraged its brand ‘Nutrela’ and it has launched a range of premium edible oils, blended edible oils, ‘Nutrela High Protein Chakki Atta’ and ‘Nutrela Honey’ in fiscal year 2021. In fiscal year 2022, it forayed into the niche and a high growth FMHG segment with the launch of their Nutraceutical business.
Further, Ruchi has expanded their packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals.
In addition, the company has a wind power generation business, where the renewable power generated is used for sale and for captive use. With this business, the company expects to offset its carbon footprint as much as possible.
Company Strengths
- Strong promoter pedigree of Patanjali group, a leading FMCG and wellness-oriented brand.
- Experienced leadership and management team
- Upstream and downstream integration and one of the key players in Oil Palm Plantation.
- Strong brand recognition in the Indian market.
- Robust and well-established and extensive distribution network.
- Market leader in branded Textured Soya Protein (TSP) segment.
- Presence across mass, value and premium segments.
Company Financials
Particulars | For the period ended (₹ in crore) | |||
Apr-Sept FY22 | FY21 | FY20 | FY19 | |
Total Assets | 9,411.80 | 9,008.81 | 7,867.61 | 7,894.27 |
Total Revenue | 11,306.98 | 16,382.97 | 13,175.36 | 12,829.25 |
Profit After Tax | 337.80 | 680.77 | 7,714.61 | 34.12 |
Purpose of the IPO
- Repayment and prepayment of borrowings from consortium of lenders, promoters, in full or part, availed by the company totalling Rs 2,663.82 crore.
- Funding incremental working capital requirements of the company aggregating to Rs 593.42 crore.
- General corporate purposes.
Company Promoters
Acharya Balkrishna, Ram Bharat, Snehlata Bharat, Ruchi Soya Industries Limited Beneficiary Trust, Patanjali Ayurved Limited, Vedic Broadcasting Limited, Patanjali Peya Private Limited, Patanjali Natural Biscuits Private Limited, Divya Packmaf Private Limited, Divya Yog Mandir Trust, Patanjali Gramudyog Nayas, Patanjali Parivahan Private Limited, Vedic Ayurmed Private Limited, Sanskar Info TV Private Limited, Patanjali Agro India Private Limited, SS Vitran Healthcare Private Limited, Patanjali Paridhan Private Limited, Gangotri Ayurveda Private Limited, Swasth Aahar Private Limited, Patanjali Renewable Energy Private Limited and Yogakshem Sansthan.
FPO Details
FPO Opening Date | Mar 24, 2022 |
FPO Closing Date | Mar 28, 2022 |
Issue Type | Book Built Issue FPO |
Face Value | ₹2 per equity share |
FPO Price | ₹615 to ₹650 per equity share |
Market Lot | 21 Shares |
Minimum Order Quantity | 21 Shares |
Listing At | BSE, NSE |
FPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 21 | ₹13,650 |
Maximum | 14 | 294 | ₹191,100 |