SEBI Notes The Changes Made In Ruchi Soya's Offer Document

"We have noted the changes made in the offer document as intimated by you in your above mentioned letter and email," said SEBI.

(File Photo)

Mumbai: The market regulator SEBI on Thursday noted the changes made in the Rs 4300 crore follow-on public offer of Ruchi Soya, promoted by Baba Ramdev led Patanjali Ayurveda.

"We have noted the changes made in the offer document as intimated by you in your above mentioned letter and email," said SEBI.

Company officials claim it to be deemed approved by the market regulator.

 The Rs 4300 crore follow on public offer (FPO), is likely to be launched within a week of getting the formal nod from the SEBI.

The FPO proceeds will be used to repay the company's debt and support further working capital requirements. The FPO will help the company to comply with Sebi's minimum public shareholder requirements. A listed firm must have at least 25% public shareholding, according to the regulator's guidelines.

The Indian edible oils company has time until December 2022 to reduce its holding to 75%. The promoters own 98.90% of the company as of June 2021. The FPO is a book-built one with a face value of Rs 2 per equity share.

Patanjali Ayurveda bought Ruchi Soya through an insolvency process in 2019 for Rs 4,350 crore. Ruchi Soya specializes in processing oilseeds, refining edible crude oil as cooking oil, and producing soya products and value-added products. The company features a farm-to-fork business model and an integrated value chain in the palm and soya divisions.

According to Baba Ramdev, the Patanjali Group, which includes Ruchi Soya, is on track to overtake Hindustan Unilever as the country's top FMCG company this year. In 2020-21, the Haridwar-based company surpassed the Rs 30,000 crore revenue milestone, compared to HUL's Rs 45,311 crore revenue.

Baba Ramdev last month said that the initial investor response for the Ruchi Soya issue has been robust and that he would ensure that the price of the upcoming offering is fixed in the interest of all existing and potential shareholders.

On Thursday, Ruchi Soya's shares on BSE closed down marginally at Rs 1093.2 in an almost flat Mumbai market, valuing the company at Rs 32,314 crore.