The ₹4,300 crore follow-on public offer (FPO) of Ruchi Soya Industries opens today. The issue will close on Monday. The company plans to sell 6.99 crore shares through the FPO at a price band of ₹615-650.
The minimum bid size has been fixed at 21 shares. Investors have to shell out ₹13,650 for a single lot of Ruchi Soya at the upper band. The issue also includes a reservation of up to 10,000 equity shares for subscriptions by eligible employees.
Anchor investors
The diversified FMCG and FMHG focused company has garnered ₹1,290 crore from anchor investors ahead of Wednesday. It has allotted 1.98 crore shares to anchor investors at the upper-end of the price-band i.e. ₹650 a shares
Among the foreign investors in the anchor book include Societe Generale, BNP Paribas, The Sultanate of Oman —Ministry of Defence Pension Fund, Yas Takaful PJSC (an Abu Dhabi-based insurance company), MK Cohesion, UPS Group and Alchemy.
Besides, domestic investors included ASK Investments, Volrado Ventures, Kotak Mutual Fund, SBI Pension Fund, UTI Mutual Fund, Aditya Birla Sun Life Mutual Fund, Quant Mutual Fund, Winro Commercial, HDFC Life Insurance, SBI Life Insurance and Authum Investments.
At the upper price-band, Patanjali, which now owns 98.9 per cent of Ruchi Soya, will dilute about 19 per cent and 18 per cent at the lower end. Promoters have to dilute 6-7 per cent before year-end to meet the SEBI norms of mandatory 25 per cent public float.
FPO proceeds
Ruchi Soya plans to use ₹3,300 crore from the FPO proceeds to repay debt. It has reserved 10,000 equity shares for subscription by employees. Baba Ramdev’s Patanjali Group had acquired Ruchi Soya in 2019 for ₹4,350 crore through an insolvency process.