Ruchi Soya FPO: Issue Subscribed 3.8 Times On Final Day Of Bidding

The FPO of Ruchi Soya Industries received bids of 17,60,68,935 shares against the offered 4,89,46,260 equity shares, according to the BSE

New Delhi: Edible oil firm Ruchi Soya Industries’ follow-on public offer (FPO) was overall subscribed 3.8 times on the final day of bidding on Monday.

According to the filing on the BSE, the FPO of Ruchi Soya Industries received bids of 17,60,68,935 shares against the offered 4,89,46,260 equity shares, as per the 5:00 pm data available on the BSE website. 

The portion reserved for retail investors was subscribed 0.90 times. The Qualified Institutional Buyer (QIB) category was subscribed 2.20 times, while the Non-Institutional Investor category was subscribed 11.75 times and the Employee Reserved category was subscribed 7.76 times.

The FPO consists of fresh issuance of equity shares for an amount totalling to Rs 4,300 crore. The Patanjali-backed company had already mopped up Rs 1,290 crore through the anchor book.

The price band for the offer has been fixed at Rs 615-650 per share. 

Ramdev-led Patanjali Ayurved’s company has reserved half of the offer for qualified institutional buyers (QIB) and 15 per cent for non-institutional investors. Their portions were subscribed 87 per cent and 4.13 times, respectively.

Employees have put in bids for 55,713 equity shares against the 10,000 shares reserved for them.

In August last year, the company had received approval from the mrket regulator Sebi to launch the FPO. The company had filed the draft red herring prospectus (DRHP) in June 2021.

According to the DRHP, Ruchi Soya would utilise the entire issue proceeds for furthering its business by repayment of certain loans, meeting its incremental working capital requirements, and other general corporate purposes.

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.

It is a diversified FMCG and FMHG (fast-moving consumer and health goods) company, with facilities and brands having a pan-Indian presence. The brands portfolio comprises Nutrela, Mahakosh, Ruchi Gold, Ruchi Star, Sunrich, Soyumm and others, which are well positioned in the market. Ruchi Gold is India's biggest selling palm oil brand.

A news report has mentioned that the company also focuses on modern trade and e-commerce platforms like Big Basket and its products were exported to over 30 countries as of September last year.