InvestorQ : Has Ruchi Soya filed for a new issue?
Dawn Cherian made post

Has Ruchi Soya filed for a new issue?

Mitali Bhutta answered.
1 year ago

Actually, Ruchi Soya had filed with SEBI for a follow-on public offer or FPO and the SEBI approval has now come through. It may be recollected that Ruchi Soya was acquired by Patanjali Ayurved from NCLT. The proceeds of the FPO will be used to reduce the stake of the promoter shareholding and also to cut debt of the company. The FPO could happen next week and is slated to be worth Rs.4,300 crore.

While the pricing of the FPO is not yet known, it is expected to be at a steep discount to the market price to make the FPO relatively attractive. They have a huge comfort zone as Ruchi Soya had re-listed after being taken over by Patanjali Ayurved at a listing price of Rs.16 in early 2020. However, over the next 6 months the stock rallied from Rs.16 to Rs.1,535 and is now quoting at Rs.1,128.