Ruchi Soya Industries Rs 4,300 cr FPO to open on March 24

Ruchi Soya Industries Limited, a part of the Patanjali Group has fixed a price band at Rs 615 to Rs 650 per share for its follow-on public offer (FPO). The FPO will open on March 24 and close on March 28, 2022.

The Company is a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence.

The FPO consists of fresh issuance of Equity Shares for an amount aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 Equity Shares for subscription by eligible employees.

"Nutraceuticals is one of the fastest growing segments in the health and wellness segment post the pandemic and it is driving a big change. We had launched it in June last year and have received a good response from the marketplace. All our products are 100% vegetarian," said Sanjeev Asthana, CEO, Ruchi Soya Industries Limited.

"If the prices of products across the category rises then we too raise the prices of our products. But we try to maintain a fine balance between the profit, the consumer, our employees and all the other stakeholders," said Baba Ramdev. Through the acquisition and growth of Ruchi Soya, our ambition is to make Patanjali Ayurved a global brand, a MNC with its root in India, he added.

"Though we are a profit making company, we are not paying dividend as we currently hold 98% of the equity. Instead we are routing the profits back into the company for its growth and expansion," said Asthana when asked about the dividend policy of the company.

The Company, in consultation with the book running lead managers to the issue considered participation by Anchor Investors in accordance with the SEBI ICDR Regulations, whose participation shall be one Working Day prior to the Bid/Issue Opening Date, i.e. March 23, 2022.

Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its ‘Ruchi Gold’ brand has a market leadership position, on account of being India’s highest selling palm oil brand and also the pioneers and largest manufacturers of soya foods in India under the brand name of “Nutrela’. The Company is recognised amongst the largest branded oil packaged food company with a strong portfolio of brands

in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed etc. with robust brands portfolio of “Ruchi Gold”, “Mahakosh”, “Sunrich”, Ruchi Star and Ruchi Sunlight.

The Company has expanded its packaged food portfolio by acquiring the ‘Patanjali’ product portfolio of biscuits, cookies, rusks, noodles, and breakfast cereals and is a part of the Patanjali group, one of India’s leading FMCG and health and wellness company. On the back of Patanjali group’s over 14 years experience in the nutraceutical and wellness products, Ruchi Soya has launched its nutraceuticals under the joint branding of ‘Patanjali and Nutrela’.

SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead managers to the Issue.

Published on: Monday, March 21, 2022, 03:54 PM IST