New Delhi: Edible oil firm Ruchi Soya, owned by Baba Ramdev-led Patanjali Ayurved, has decided on the floor price of Rs 615 to Rs 650 per equity share for its whopping Rs 4,300 crore follow-on public offer (FPO), according to news reports.
The company will hit the capital market with its FPO on March 24 to raise and bidding will be allowed till March 28.
The FPO committee of Ruchi Soya has approved the bit allotment size. The minimum bid lot shall be 21 and in multiples of 21 equity shares thereafter.
Ruchi Soya in a regulatory filing said that the committee has approved and adopted the red herring prospectus (RHP).
The firm will offer equity shares with a face value of Rs 2 each amounting to Rs 4,300 crore under the FPO. The issue will also include a reservation of about 10,000 equity shares to eligible employees for a subscription.
Ruchi Soya is coming out with the public issue to meet the Securities and Exchange Board of India’s (Sebi’s) norm of minimum public shareholding of 25 per cent in a listed entity.
Under the Sebi norms, the minimum requirement for a public shareholding in a listed firm should be 25 per cent. However, Patanjali owns 98.9 per cent in Ruchi Soya, while public shareholders own 1.1 per cent. After the listing, Patanjali’s shareholding in Ruchi Soya will reduce to 81 per cent, while public shareholding will rise to 19 per cent.
In Last August, the company had received Sebi’s nod to launch the FPO. It had filed the draft red herring prospectus (DRHP) in June 2021.
According to the DRHP, Ruchi Soya will utilise the entire issue proceeds for furthering the company’s business by repayment of certain outstanding 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.