The follow-on public offering of Ruchi Soya Industries Ltd, a diversified FMCG and FMHG focused company, with strategically located manufacturing facilities and well-recognised brands having pan India presence, received bids of 17,60,68,935 shares against the offered 4,89,46,260 equity shares, as per the 5:00 PM data available on the BSE website. Overall the issue was subscribed 3.60 percent on the final day of bidding.
The portion reserved for retail investors was subscribed 0.90 times. While the Qualified Institutional Buyer category was subscribed 2.20 times, the Non-Institutional Investor category was subscribed 11.75 times and the Employee Reserved category was subscribed 7.76 times.
The FPO comprises equity shares of the face value of Rs 2 each aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees and promoters are offloading equity shares in the range of Rs 615 – 650 each.
Last week, Ruchi Soya raised Rs 1290 crore from anchor investors, who were allotted 19,843,153 equity shares at the upper price band of Rs 650 per share.
Key brokerage houses like Hem Securities Research, Marwadi Financial Services, Angel One Limited, Asit C. Mehta Investment Interrmediates Limited and Choice Equity Broking Pvt Limited have given recommendations of "Subscribe" to the issue for long term perspective while highlighting the key strengths of the company.
According to brokerage houses, Ruchi Soya is one of the largest FMCG companies in the Indian edible oil sector.
In terms of valuations, the post-issue FPO TTM P/E will be in the range of 26.6-34.8 times (at the upper end of the issue price band). Also company’s products enjoy strong brand recognition in the Indian market & benefit from a strong, established and extensive distribution network.
SBI Capital Markets Limited, Axis Capital Limited and ICICI Securities Limited are the book running lead managers to the Issue.
