FMCG major Ruchi Soya Industries Limited's follow-on public offer (FPO) hit the Indian share market on Friday.
The FPO has opened at Rs 855 a share, with a premium of Rs 205 over the issue price. Yoga Guru Ramdev, Acharya Balkrishna and others were present at the FPO listing ceremony at the Bombay Stock Exchange.
The stock jumped over 8 percent after listing of shares of the company pursuant to the Follow on Public Offer (FPO).
The stock jumped 7.77 percent to Rs 882.55 on the BSE.
At the NSE, it gained 8.23 percent to Rs 885.
According to a BSE notice dated April 7 (Thursday), 6,61,53,846 equity shares of Rs 2 each fully paid up of Ruchi Soya Industries Limited are listed and admitted for trading on the exchange with effect from Friday, April 08, 2022.
On Tuesday, the company had informed stock exchanges that it has approved the allotment of 6,61,53,846 equity shares for an amount aggregating to Rs 4,300 crore pursuant to the FPO.
The company had fixed the FPO issue price at Rs 650 per share.
Ramdev-led Patanjali Ayurved owned Ruchi Soya had approved the allotment of 6,61,53,846 equity shares for an amount aggregating to Rs 4,300 crore pursuant to the FPO.
The issue was open from March 24-28.
Notably, in a rare move, the Securities and Exchange Board of India (SEBI), on March 28, had asked the bankers of Ruchi Soya to give an option to investors in its FPO to withdraw their bids while also cautioning them about the "circulation of unsolicited SMS" about the share sale.
Therefore, while the FPO was closed on March 28, the withdrawal window till March 30, following which nearly 97 lakh bids were withdrawn by FPO investors.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said, Ruchi Soya may see some selling pressure on an immediate basis as it will see unwinding in FPO arbitrage positions therefore investors who applied for arbitrage gain, should book profit while long terms investors can remain invested because multiple positive things are going for the company, shortage of Palm oil and oilseeds will improve the realizations which augur well for the profitability in the short to medium term. Technically, the 700 level should act as an immediate floor for the stock.
Shares plummet nearly 9% on Wednesday
On Wednesday, the company's share plummeted by nearly 9 percent.
Ruchi Soya has 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.
Its 'Ruchi Gold' brand has a market leadership position, on account of being India's highest-selling palm oil brand, the company said.
Ruchi Soya is the pioneer and largest manufacturer of soya foods in India under the brand name of "Nutrela". Ruchi Soya 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. In the past year, Ruchi Soya also forayed into the niche and high growth FMHG segment with the launch of its Nutraceuticals products on the back of a decade of research by the Patanjali Group.
(With ANI inputs)
